PURITY reports six month net profit of $8.65 million

August 17, 2020

Consolidated Bakeries (Jamaica) Limited (PURITY) recorded a 1% decrease in revenue to $543.63 million from $548.67 million reported for the corresponding period in 2019. For the second quarter the company recorded a revenue of $244.58 million (2019: $275.03 million), representing an 11% decline year over year.

Cost of sales for the period slid 2% to close at $331.55 million (2019: $339.28 million), leading to a gross profit of $212.08 million (2019: $209.38 million). Within the quarter PURITY recorded gross profits of $95.41 million, down 2% year over year (2019: $97.09 million).

The Company reported total expenses of $194.880 million, a 3% increase when compared to the $189.85 million reported in 2019. Of this, administrative expenses amounted $104.90 million, up 8% relative to the $97.14 million reported in 2019, while, selling expense fell 4% to close at $74.18 million (2019: $77.30 million). Total expenses for the second quarter amounted to $90.77 million, down 4% year over year from $95.02 million booked in 2019.

This resulted in an operating profit of $17.28 million for the six-month period, compared to $19.53 million for the comparable period in 2019. For the second quarter, operating profit amounted to $4.65 million relative to $2.08 million in 2019.

Interest and other income decreased 67% to $490,830 relative to $1.47 million booked for the comparable period in 2019.

Finance costs rose by 45% to close at $7.89 million versus $5.42 million twelve months earlier.

Consequently, PURITY recorded pre-tax profit of $9.88 million relative to $15.58 million in 2019. Pre-tax profit for the quarter closed at $1.41 million compared to a pre-tax profit of $61,699 in the previous corresponding quarter.

The Company incurred taxes of $1.24 million (2019: $1.95 million) for the period under review, resulting in a net profit of $8.65 million relative to $13.63 million in 2019. For the second quarter, the Company booked net profit of $1.23 million in contrast to a profit of $53,987 for the corresponding quarter in 2019.

As a result, earnings per share (EPS) for the six-months amounted to $0.039 compared to earnings per share (EPS) of $0.061 reported in 2019. For the quarter, the earnings-per-share totaled $0.0055 relative to an earnings-per-share (EPS) of $0.0002 in 2019. The twelve-months trailing loss per share is $0.08 and the number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on August 17, 2020 at $1.38.

Balance Sheet Highlights:

PURITY, as at June 30, 2020, recorded Total Assets of $1.01 billion, an increase of 1% on $999.97 million reported in 2019. The increase was attributed mainly to a 4% growth in ‘Property, Plant and Equipment’ which closed at $762.10 million (2019: $732.93 million). ‘Cash and Cash Equivalents’ also increased 4% to $78.35 million (2019: $74.04 million).

The company closed the period with shareholders’ equity in the amount of $716.56 million, down 3% to $736.40 million recorded in 2019. As such, the company has a book value per share of $3.22 (2019: $3.31).

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