PURITY reports first quarter net profit of $20.05 million

May 15, 2023

Consolidated Bakeries (Jamaica) Limited (PURITY), for the three months ended March 31, 2023 recorded a $79.90 million increase in revenue from $378.08 million in 2022 to $457.99 million in Q1 of FY23. Cost of sales grew accordingly, rising by 22% to $285.52 million (2022: $233.71 million)

Consequently, PURITY’s first quarter Gross Profit grew to $172.47 million from $144.38 million in 2022.

Total expenses grew by 16% to $147.35 million (2022: $126.50 million). Of Total Expenses, selling expense grew by 41% to $65.03 million (2022: $46.08 million).

Operating Profit for the period was $25.11 million, relative to $17.88 million reported in Q1 2022.

Finance Costs reported were $4.09 million (2022: $2.38 million).

PURITY’s net profit rose by 22% to $20.05 million (2022: $16.46 million).

Based on current earnings, PURITY outputs an earnings per share (EPS) of $0.09 compared to an EPS of $0.07 reported in 2022. On a twelve-months trailing basis PURITY outputs an EPS of $0.08. The number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on May 15, 2023 at $2.03, corresponding with a P/E ratio of 25.88x.

Balance Sheet at a glance:

As at March 31, 2023, PURITY had Total Assets of $1.25 billion (2022: $1.10 billion). The increase was mainly due to a rise in Trade receivables which closed at $246.82 million (2022: $184.17 million).

The company closed Q1 of FY23 with Shareholders’ Equity of $717.35 million (2022: $697.76 million). As a result, the company recorded a book value per share of $3.22 (2022: $3.13).

Disclaimer:

Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.

2023-05-15T16:38:02-05:00