PURITY reports six months net profit of $29.92 million

August 08, 2022
Consolidated Bakeries (Jamaica) Limited (PURITY)

Financials for six months ended June 30, 2022:-

Consolidated Bakeries (Jamaica) Limited (PURITY), for the six months ended June 30, 2022 recorded an $187.7 million increase in revenue from $532.33 million in 2021 to $720 million in 2022. Cost of Sales grew accordingly, rising by 33% to $430.69 million (2021: $324.83 million). During the second quarter PURITY reported revenue of $341.92 million (2021: $241.37 million). Cost of Sale rose by 32% to $196.98 million relative to the $149.25 million reported a year prior.

The 35% growth in revenue led to a rise in PURITY’s six months Gross Profit growing to $289.32 million from $207.50 million in 2021. While Gross Profit for the second quarter rose by 57% to end at $144.94 million (2021: $92.12 million).

However, Total expenses also grew according, growing by 22% to $251.66 million (2021: $206.60 million). Of Total Expenses, administrative & selling expense grew by 19% and 30% to $137.88 million (2021: $117.34 million) and $96.55 million (2021: $74.26 million) respectively.

Operating Profit for the period was of $37.66 million, relative to operating loss of $125,668 reported in 2021.

Finance Costs reported were $9.44 million (2021: $6.33 million).

PURITY’s six months Net Profit was $29.92 million compared to a loss of $5.42 million in the previous corresponding period. Net Profit during the quarter amounted to $13.46 million relative to Net Loss of $14.42 million reported in 2021.

Based on current earnings, PURITY outputs an earnings per share (EPS) of $0.13 compared to loss-per-share (LPS) of $0.02 reported in 2021. EPS for the quarter amounted to $0.060 versus a LPS of $0.065 booked twelve months prior. On a twelve-months trailing basis PURITY outputs an EPS (earnings per share) of $0.08. The number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on August 5, 2022 at $1.40 with a corresponding P/E ratio of 17.61 times.


Balance Sheet at a glance:

For the six months ended June 30, 2022, PURITY had Total Assets of $1.07 billion (2021: $1.02 billion). Trade receivables closed at $104.79 million (2021: $115.07 million) while Inventories amounted to $81.37 million (2021: $41.28 million).

Shareholders’ Equity amounted to $708.57 million (2021: $689.36 million). As a result, the company now has a book value per share of $3.18 (2021: $3.10).

Image previewDisclaimer:

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 effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.