April 4, 2024
The Consolidated Bakeries (Jamaica) Limited (PURITY) for the twelve months ended December 31, 2023, reported a 11% increase in Revenue totaling $1.52 billion compared to $1.37 billion in the corresponding period last year. Revenue for the fourth quarter had a 6% increase to close at $344.49 million compared to $324.10 million for the comparable quarter of 2022.
Cost of Sales amounted to $921.00 million (2022: $829.47 million), this represents an increase of 11% year over year. Consequently, gross profit increased by 11% to $594.28 million compared to $536.88 million for the twelve months ended December 31, 2022. The company booked gross profit of $148.88 million for the fourth quarter versus $131.84 million reported for the similar quarter of 2022.
Selling Expense increased by 21% to close at $246.24 million (2022: $203.45 million), while Admin Exp increased by 3% from $266.26 million in 2022 to $274.47 million in the period under review. As a result, total expenses for the twelve months ended December 31, 2023, amounted to $561.93 million, an 11% increase relative to $505.28 million reported in 2022.
Operating Profit for the twelve months amounted to $32.35 million, a 2% increase relative to $31.60 million reported in 2022. Operating Profit for the fourth quarter amounted to $5.89 million (2022: $5.39 million). Finance Cost totalled $19.67 million, a 21% increase from the corresponding period last year. (2022: $16.27 million).
Pre-tax profit for the twelve months ended December 31, 2023, amounted to $17.27 million, a 3% decrease relative to $17.73 million reported in 2022. Pre-tax profit for the fourth quarter amounted to $2.68 million (2022: $2.84 million).
Taxation for the twelve months ended December 31, 2023, had a 12% increase to reach $4.29 million (2022: $3.85 million). Net Profit for the twelve months amounted to $12.97 million, a 7% decrease from the $13.88 million reported in 2022. For the fourth quarter, Net Profit was $518,388 (2022: Net loss of $1.01 million).
Consequently, Earnings Per Share for the twelve months amounted to $0.06 (2022: EPS: $0.06), while Earnings Per Share for the quarter totaled $0.002 (2022: LPS: $0.005). 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 April 4, 2024, at a price of $2.19 with a corresponding P/E ratio of 37.59x.
Balance Sheet Highlights
The company’s assets totalled $1.13 billion (2022: $1.08 billion). The increase resulted from an 8% increase in ‘Property, plant & equipment’ closing at $851.41 million.
Shareholder’s equity was $709.85 million (2022: $696.88 million), representing a book value per share of $3.19 (2022: $3.13).
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.
