August 4, 2023

Paramount Trading (Jamaica) Limited (PTL) for the year ended May 31, 2023 reported a 44% increase in Gross operating Revenue totaling $2.46 billion compared to $1.72 billion in the corresponding period last year. Turnover for the fourth quarter had a 72% increase to close at $829.60 million compared to $482.49 million for the comparable quarter of 2022.

Direct Expenses amounted to $1.74 billion (2022: $1.15 billion), this represents an increase of 51% year over year. Consequently, gross profit increased by 28% to $721.27 million compared to $562.41 million for the Year ended May 31, 2022. The company booked gross profit of $172.60 million for the Fourth quarter versus $163.20 million reported for the similar quarter of 2022.

Other operating income increased by 11% to close at $84.28 million (2022: $75.86 million), while Administrative Expenses increased by 11% from $391.29 million in 2022 to $436.10 million in the period under review. As a result, total expenses for the Year ended May 31, 2023 amounted to $467.78 million, a 14% increase relative to $408.93 million reported in 2022.

Operating profit for the Year ended May 31, 2023, amounted to $337.77 million, a 47% increase relative to $229.34 million reported in 2022. Operating profit for the Fourth quarter amounted to $97.71 million (2022: $88.87 million). Net Finance cost totaled $47.04 million a 9% increase from the corresponding period last year. (2022: $43.03 million).

Pre-tax Profit for the Year ended May 31, 2023, amounted to $290.72 million, a 56% increase relative to $186.31 million reported in 2022. Pre-tax Profit for the Fourth quarter amounted to $83.61 million (2022: $77.80 million).

Taxation for the Year ended May 31, 2023 had a 286% increase to reach $45.31 million (2022: $11.74 million). Net Profit for the Year End amounted to $245.41 million, a 41% increase from the $174.57 million reported in 2022. For the Fourth quarter, Net Profit was $66.37 million (2022: $79.62 million).

Consequently, Earnings Per Share for the Year End amounted to $0.16 (2022: EPS: $0.11), while Earnings Per Share for the quarter totaled $0.04 (2022: EPS: $0.05). The number of shares used in these calculations was 1,542,467,080.

Notably, PTL’s stock price closed the trading period on August 03, 2023 at a price of $1.90 with a corresponding P/E ratio of 11.94x.

Balance Sheet Highlights

The company’s assets totaled $2.23 billion (2022: $1.93 billion). This increase was due to increases in ‘Receivables’ which grew to $744.73 million (2022: $331.56 million) and ‘Inventories’ which amounted to $739.75 million (2022: $670.84 million).

Shareholder’s equity was $1.13 billion (2022: $909.20 million), representing a book value per share of $0.73 (2022: $0.59).

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