PURITY reports year end net profit of $12.96 million

Date: May 06, 2019

Consolidated Bakeries (Jamaica) Limited (PURITY) recorded an 11% increase in revenue to $960.32 million from $862.61 million reported for the corresponding period in 2017. For the quarter, the Company recorded revenues of $243.87 million (2017: $219.54 million), representing an 11% growth.

Cost of sales for the period rose by 7% to close at $588.15 million (2017: $548.27 million), leading to a gross profit of $372.17 million (2017: $314.34 million). Within the quarter, PURITY recorded cost of sales of $141.40 million, up 20% relative to $117.47 million booked at the end of the quarter for 2017. As such, fourth quarter’s gross profit totaled $102.46 million, marginally up by 0.4%. year over year (2017: $102.06 million).

Other Income went up drastically by 1036% to close at $9.94 million (2017: $874,770). For the quarter, other income amounted to $6.82 million versus other loss of $2.50 million reported in the previous corresponding period.

The Company reported total expenses of $340.19 million, a 4% rise when compared to the $328.44 million reported in 2017. Of this, Administrative expenses amounted to $153.88 million, up 3% relative to $148.95 million reported in 2017. Selling expenses went up by 7% to close at $158.94 million (2017: $149.06 million), whereas depreciation closed at $27.37 million (2017: $30.43 million).

This resulted in an operating profit of $41.92 million for the year end compared to an operating loss of $13.23 million documented for the comparable period in 2017. For the quarter, operating profit amounted to $9.38 million relative to operating profit of $6.26 million recorded in the prior corresponding quarter.

Finance costs increased by 22% to close at $23.07 million versus $18.88 million booked twelve months earlier.

Consequently, PURITY recorded pretax profit of $18.85 million compared to pretax loss of $32.10 million.  Pretax loss for the quarter closed at $4.14 million compared to pretax loss of $9.24 million in the previous comparable quarter.

The Company incurred taxes of $5.89 million (2017: $7.99 million) for the period under review, resulting in net profit of $12.96 million versus a loss of $40.10 million booked twelve months earlier. For the quarter, the Company recorded a net loss of $7.15 million compared to a loss of $17.24 million for the corresponding quarter in 2017.

As a result, earnings per share (EPS) for the year end amounted to $0.06 compared to a loss per share (LPS) of $0.18 reported in 2017. For the quarter, the loss per share totaled $0.032 relative to a LPS of $0.077 in 2017. The number of shares used in our calculations is 222,709,171 units. PURITY stock last traded on May 3, 2019 at $2.00.

Balance Sheet Highlights:

PURITY, as at December 31, 2018, recorded ‘Total Assets’ of $983.14 million, an increase of 7% year over year. The increase was attributed mainly to a 24% and 14% growth in ‘Inventories’ and ‘Accounts Receivables’ which closed at $43.34 million (2017: $35.01 million) and $93.93 million (2017: $82.08 million), respectively.

The Company closed the period with Shareholders’ Equity totalling $720.66 million, representing a marginal 1% increase which resulting in a  book value per share of $3.24 (2017: $3.22).

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