PURITY reports year end net profit of $13.88 million

April 3, 2023

Consolidated Bakeries (Jamaica) Limited (PURITY), for the twelve months ended December 31, 2022 recorded a 27% increase in revenue to $1.37 billion from $1.08 billion reported in 2021. For the fourth quarter, the company recorded revenues worth $323.53 million (2021: $280.92 million), representing a 15% increase.

Gross Profit grew 26% to $536.88 million (2021: $424.69 million) for the twelve months. Within the quarter, PURITY recorded Gross Profit of $131.26 million, up 15% year over year (2021: $114.23 million).

The Company reported Total Expenses of $505.28 million, a 16% increase when compared to the $435.91 million reported in 2021. Notably, the main driver in total expenses was Selling Expenses, which went up by 33% to close at $203.45 million (2021: $152.49 million).

Consequently, Operating Profit totalled $31.60 million for the twelve-months period, compared to an operating loss of $11.22 million documented the year prior. For the fourth quarter, PURITY experienced an Operating Profit of $5.38 million relative to an Operating Loss of $14.38 million booked in 2021.

Finance Costs rose by 39% to $16.27 million versus $11.74 million booked twelve months earlier. Interest and other income closed the year at $2.40 million (2021: $1.30 million).

PURITY recorded a Pre-tax profit of $17.73 million compared to a Pre-tax loss of $21.67 million in 2021. Pre-tax profit for the quarter was $2.30 million in 2022 compared to a Pre-tax loss of $14.65 million in the previous corresponding quarter.

Tax charge incurred for the period under review amounted to $3.85 million relative to a tax credit of $4.03 million in the prior year.

PURTIY experienced a Net Profit of $13.88 million for the twelve months ended December 31, 2022 versus a loss of $17.64 million in 2021. In their fourth quarter, the Company recorded a net loss of $1.55 million versus a loss of $10.62 million in the corresponding quarter in 2021.

As a result, earnings per share (EPS) for the twelve-months amounted to $0.06 compared to a loss-per-share (LPS) of $0.08 reported in 2021. For the quarter, the loss-per-share was $0.007 relative to a LPS of $0.048 in 2021. The number of shares used in our calculations was 222,709,171 units. PURITY stock last traded on March 31, 2023 at $2.15 with a corresponding P/E of 34.49 times.

Balance Sheet at a glance:

PURITY, as at December 31, 2022, PURITY held Total Assets valued at $1.08 billion, an increase of 5% year over year when compared to $1.03 billion in 2021. The increase was attributable to a $11.08 million gain in ‘Inventories’ which closed at $78.51 million (2021: $67.43 million).

The Company closed the period with Shareholders’ Equity totaling $696.88 million (2021: $682.21 million). As a result, the company now has a book value per share of $3.13 (2021: $3.06).


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