November 15, 2021
Consolidated Bakeries (Jamaica) Limited (PURITY), for the nine months ended September 30, 2021 recorded a 4% increase in revenue to $798.88 million from $770 million reported for the corresponding period in 2020. For the third quarter, the company recorded a revenue of $266.57 million (2020: $226.38 million), representing a 18% increase.
Cost of sales for the period fell by 5% to close at $486.42 million (2020: $465.98 million), leading to a gross profit of $312.46 million (2020: $304.02 million). Within the quarter, PURITY recorded cost of sales of $160.96 million, down 20% relative to $134.44 million booked at the end of the third quarter for 2020. As such, third quarter’s gross profit totalled $105.60 million, up 4% year over year (2020: $91.94 million).
The Company reported total expenses of $311.30 million, a 8% rise when compared to the $287.79 million reported in 2020. Of this, administrative expenses amounted to $177.81 million, up 12% relative to $159.27 million reported in 2020. Selling Expenses went up by 4% to close at $109.39 million (2020: $104.94 million). Total Expenses for the third quarter amounted to $105.33 million relative to the $92.98 million booked in 2020.
This resulted in an operating profit of $1.15 million for the nine-months period, compared to an operating profit of $16.23 million documented for the comparable period in 2020. For the third quarter, Operating Profit amounted to $278,828 relative to an Operating Loss of $1.05 million booked in 2020.
Finance Cost fell by 9% to close at $9.43 million versus $10.40 million booked twelve months earlier. Interest and other income closed the period at $1.26 million, 22% above the $1.03 million recorded for the nine months ended September 30, 2020.
Consequently, PURITY recorded Pre-tax loss of $ 7.02 million compared to a Pre-tax profit of $6.86 million in 2020. Pre-tax loss for the quarter closed at $2.61 million in 2021 compared to a Pre-tax loss of $3.02 million in the previous corresponding quarter.
No taxes were incurred for the period under review, resulting in a net loss of $7.02 million versus a profit of $5.24 million last year. For the third quarter, the Company booked a net loss of $2.61 million in contrast to a loss of $2.64 million for the corresponding quarter in 2020.
As a result, loss per share (LPS) for the nine-months amounted to $0.03 compared to an earnings-per-share (EPS) of $0.02 reported in 2020. For the quarter, the loss-per-share totalled $0.012 relative to a LPS of $0.012 in 2020. The twelve-months trailing LPS is $0.12. The number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on November 12, 2021 at $1.60.
Balance Sheet at a glance:
PURITY, as at September 30, 2021, recorded Total Assets of $1.01 billion, an increase of 1% year over year when compared to $999.27 million booked last year. The increase was attributed mainly to a 19% expansion in ‘Investment’ which closed at $27.81 million (2020: $23.30 million). Notably ‘Cash and Cash Equivalents’ and ‘Property Plants and Equipment’ recorded growth amounting to $63.86 million (2020: $72.35 million) and $764.44 million (2020: $765.88 million), respectively.
The company closed the period with Shareholders’ Equity in the amount of $688.21 million (2020: $713.16 million). As a result, the company now has a book value per share of $3.09 (2020: $3.20).
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