May 15, 2024
The Consolidated Bakeries (Jamaica) Limited (PURITY) for the first quarter ended March 31, 2024, reported a 15% increase in revenue totalling $525.07 million compared to $457.99 million in the corresponding three months last year.
Cost of Sales amounted to $325.33 million (2023: $285.52 million), this represents an increase of 14% year over year. Consequently, gross profit increased by 16% to $199.74 million compared to $172.47 million for the first quarter ended March 31, 2023.
Selling Expense increased by 23% to close at $79.76 million (2023: $65.03 million), while Admin Expense increased by 15% from $72.82 million in 2023 to $83.93 million for the three months. As a result, Total Expenses for the first quarter amounted to $174.57 million, an 18% increase relative to $147.35 million reported in 2023.
Operating Profit for the three months amounted to $25.17 million relative to $25.11 million reported in 2023. Finance Cost totalled $5.03 million, a 23% increase from the corresponding period last year. (2023: $4.09 million).
Pre-tax profit for the first quarter amounted to $20.15 million, a 6% decrease relative to $21.34 million reported in 2023.
There was no taxation reported for the period (2023: $1.29 million). Net Profit for the three months amounted to $20.15 million, a negligible increase from the $20.05 million reported in 2023.
Consequently, Earnings Per Share for the three months amounted to $0.09 (2023: EPS: $0.09). The twelve-month trailing EPS was $0.06, and the number of shares used in these calculations was 222,709,171.
Notably, PURITY’s stock price closed the trading period on May 14, 2024, at a price of $2.06 with a corresponding P/E ratio of 35.09x.
Balance Sheet Highlights
The company’s assets totalled $1.20 billion (2023: $1.25 billion). The decline resulted from a 27% dip in ‘accounts receivable’ closing at $179.98 million.
Shareholder’s equity was $731.24 million (2023: $717.35 million), representing a book value per share of $3.28 (2023: $3.22).
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.