February 15, 2022
Consolidated Bakeries (Jamaica) Limited (PURITY), for the twelve months ended December 31, 2021 recorded a 9% increase in revenue to $1.07 billion from $993.97 million reported in 2020. For the fourth quarter, the company recorded revenue worth $280.91 million (2020: $223.97 million), representing a 25% increase.
Cost of Sales for the year grew by 8% to $653.04 million (2020: $601.93 million), despite the rise, Gross Profit grew 9% to $426.75 million (2020: $392.04 million). Within the quarter, PURITY recorded Cost of Sales of $166.62 million, up 23% relative to $135.95 million booked at the end of the fourth quarter in 2020. Fourth quarter’s Gross Profit also grew to $114.29 million, up 30% year over year (2020: $88.02 million).
The Company reported Total Expenses of $437.88 million, a 12% increase when compared to the $389.25 million reported in 2020. Of this, Administrative Expenses amounted to $252.28 million, up 17% relative to $215.57 million reported in 2020. Selling Expenses went up by 9% to close at $152.66 million (2020: $139.93 million). Total Expenses for the fourth quarter are up 25% to $126.58 million relative to the $101.47 million reported in 2020.
A rise in Total Expenses translated into an Operating Loss of $11.13 million for the twelve-months period, compared to an operating profit of $2.78 million documented the year prior. For the fourth quarter, PURITY experienced an Operating Loss of $12.29 million relative to an Operating Loss of $13.44 million booked in 2020.
Finance Costs fell by 38% to $11.74 million versus $19.04 million booked twelve months earlier. Interest and other income closed the period at $1.29 million (2020: $5.81 million)
PURITY recorded a Pre-tax loss of $21.59 million compared to a Pre-tax loss of $10.45 million in 2020. Pre-tax loss for the quarter was $14.56 million in 2021 compared to a Pre-tax loss of $17.31 million in the previous corresponding quarter.
No taxes were incurred for the period under review (2020: $3.97 million).
PURTIY experienced a Net Loss of $21.58 million for the twelve months ended December 31, 2021 versus a loss of $14.42 million in 2020. In their fourth quarter, the Company also recorded a net loss of $14.56 million versus a loss of $19.67 million in the corresponding quarter in 2020.
As a result, loss per share (LPS) for the twelve-months amounted to $0.09 compared to a loss-per-share (LPS) of $0.06 reported in 2020. For the quarter, the loss-per-share was $0.06 relative to a LPS of $0.09 in 2020. The number of shares used in our calculations was 222,709,171 units. PURITY stock last traded on February 14, 2022 at $1.17.
Balance Sheet at a glance:
PURITY, as at December 31, 2021, PURITY held Total Assets valued at $1.01 billion, an increase of 1% year over year when compared to $996.40 million in 2020. The increase was attributable to a $17.46 million gain in ‘Inventories’ which closed at $67.36 million (2020: $49.90 million).
The company closed the period with Shareholders’ Equity totaling $678.26 million (2020: $693.51 million). As a result, the company now has a book value per share of $3.05 (2020: $3.11).
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.
