October 13, 2023
Paramount Trading (Jamaica) Limited (PTL) for the first quarter ended August 31, 2023, reported a 28% decrease in revenue totalling $426.05 million compared to $595.17 million in the corresponding three months last year. Management noted that the most notable impact on this decline was observed in the Construction business unit due to the conclusion of a major 6-month contract to supply admixtures.
Direct expenses amounted to $246.45 million (2022: $391.84 million), this represents a decrease of 37% year over year. Consequently, gross profit decreased by 12% to $179.60 million compared to $203.33 million for the first quarter ended August 31, 2022.
Other operating income decreased by 36% to close at $18.80 million (2022: $29.37 million).
Total expenses for the first quarter amounted to $119.20 million, a 5% decrease relative to $125.18 million reported in 2022. This was largely due to administrative expenses, which decreased by 7% from $122.58 million in 2022 to $114.60 million for the three months under review.
Operating profit for the three months amounted to $79.20 million, a 26% decrease relative to $107.52 million reported in 2022.
Net finance costs totalled $14.35 million, a 41% increase from the corresponding period last year (2022: $10.16 million).
Pre-tax profit for the first quarter ended August 31, 2023, amounted to $64.85 million, a 33% decrease relative to $97.36 million reported in 2022. According to Management, “the decline can be attributed to shifts in market demand and cost fluctuations.”
Taxation for the three months had a 40% increase to reach $8.11 million (2022: $13.45 million).
Net profit for the three months amounted to $56.74 million, a 32% decrease from the $83.91 million reported in 2022.
Consequently, earnings per share (EPS) for the three months amounted to $0.04 (2022: $0.05). The twelve-month trailing EPS was $0.14, and the number of shares used in these calculations was 1,542,467,080. Notably, PTL’s stock price closed the trading period on October 12, 2023, at a price of $1.80 with a corresponding P/E ratio of 12.72x.
Balance Sheet Highlights:
The company’s assets totalled $2.23 billion, representing an 8% increase relative to $2.06 billion booked in 2022. This upward movement was largely due to receivables, which increased by 85% to $744.06 million (2022: $403.19 million) tempered by a 71% decline in investments, which amounted to $52.59 million (2022: $180.18 million).
Shareholder’s equity was $1.19 billion (2022: $993.11 million), representing a book value per share of $0.77 (2022: $0.64).
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