May 15, 2024

The Consolidated Bakeries (Jamaica) Limited (PURITY) for the first quarter ended March 31, 2024, reported a 15% increase in revenue totalling $525.07 million compared to $457.99 million in the corresponding three months last year.

Cost of Sales amounted to $325.33 million (2023: $285.52 million), this represents an increase of 14% year over year. Consequently, gross profit increased by 16% to $199.74 million compared to $172.47 million for the first quarter ended March 31, 2023.

Selling Expense increased by 23% to close at $79.76 million (2023: $65.03 million), while Admin Expense increased by 15% from $72.82 million in 2023 to $83.93 million for the three months. As a result, Total Expenses for the first quarter amounted to $174.57 million, an 18% increase relative to $147.35 million reported in 2023.

Operating Profit for the three months amounted to $25.17 million relative to $25.11 million reported in 2023. Finance Cost totalled $5.03 million, a 23% increase from the corresponding period last year. (2023: $4.09 million).

Pre-tax profit for the first quarter amounted to $20.15 million, a 6% decrease relative to $21.34 million reported in 2023.

There was no taxation reported for the period (2023: $1.29 million). Net Profit for the three months amounted to $20.15 million, a negligible increase from the $20.05 million reported in 2023.

Consequently, Earnings Per Share for the three months amounted to $0.09 (2023: EPS: $0.09). The twelve-month trailing EPS was $0.06, and the number of shares used in these calculations was 222,709,171.

Notably, PURITY’s stock price closed the trading period on May 14, 2024, at a price of $2.06 with a corresponding P/E ratio of 35.09x.

Balance Sheet Highlights

The company’s assets totalled $1.20 billion (2023: $1.25 billion). The decline resulted from a 27% dip in ‘accounts receivable’ closing at $179.98 million.

Shareholder’s equity was $731.24 million (2023: $717.35 million), representing a book value per share of $3.28 (2023: $3.22).

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