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).
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.