August 17, 2021

Consolidated Bakeries (Jamaica) Limited (PURITY) recorded a 2% decrease in revenue to $532.33 million from $543.63 million reported for the corresponding period in 2020. For the second quarter the company recorded a revenue of $241.37 million (2020: $244.58 million), representing a 1% decline year over year.

Cost of sales for the period declined 2% to close at $324.83 million (2020: $331.55 million), leading to a gross profit of $207.49 million (2020: $212.08 million). Within the quarter, PURITY recorded gross profits of $92.12 million, down 3% year over year (2020: $95.41 million).

The Company reported total expenses of $206.60 million, a 6% increase when compared to the $194.80 million reported in 2020. Of this, administrative expenses amounted $116.32 million, up 11% relative to the $104.90 million reported in 2020, while, selling expense closed at $74.26 million (2020: $74.18 million). Total expenses for the second quarter amounted to $104.07 million, up 15% year over year from $90.77 million booked in 2020.

 This resulted in an operating profit of $892,255 for the six-month period, compared to $17.28 million for the comparable period in 2020. For the second quarter, operating loss amounted to $11.95 million relative to profit of $4.65 million in 2020.

 Interest and other income increased 112% to $1.04 million relative to $490,830 booked for the comparable period in 2020.

 Finance costs fell by 20% to close at $6.33 million versus $7.89 million twelve months earlier.

 Consequently, PURITY recorded pre-tax loss of $4.40 million relative to a profit of $9.88 million in 2020. Pre-tax loss for the quarter closed at $13.40 million compared to a pre-tax profit of $1.41 million in the previous corresponding quarter.

 The Company incurred taxes of $1.24 million in 2020 (2021: nil), resulting in a loss of $4.40 million relative to a net profit of $8.65 million in 2020. For the second quarter, the Company booked net loss of $13.40 million in contrast to a profit of $1.23 million for the corresponding quarter in 2020.

Total Comprehensive loss for the six months amounted to $3.14 million versus an income of $10.27 million booked in 2020.

 As a result, loss per share (LPS) for the six-months amounted to $0.02 compared to earnings per share (EPS) of $0.039 reported in 2020. For the quarter, the loss-per-share totaled $0.06 relative to an earnings-per-share (EPS) of $0.0055 in 2020. The twelve-months trailing loss per share is $0.12 and the number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on August 18, 2021 at $1.53. 

Balance Sheet Highlights:

PURITY, as at June 30, 2021, recorded Total Assets of $1.02 billion, an increase of 1% on $1.01 billion reported in 2020. The increase was attributed mainly to a 22% growth in ‘Accounts Receivables’ which closed at $115.07 million (2020: $94.13 million). 

The company closed the period with shareholders’ equity in the amount of $690.38 million, down 4% on the $716.56 million recorded in 2020. As such, the company has a book value per share of $3.10 (2020: $3.22).

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