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).

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.

2019-05-06T16:52:42+00:00