Listed Jamaican lubricant and chemicals dealer, Paramount Trading registered a 24% improvement in net profits for the first quarter ended August 31.
This feat was achieved in spite of issues associated with pandemic.
Net profits for the quarter went up to $18.9 million coming from the $15.2 million posted for the comparable period in 2020.
Company Chairman, Radcliff Knibbs credits the successful performance in part to the continued vigilance to expense monitoring.
Administrative cost was contained coming in flat for the first quarter $89.8 million, compared to $89.3 million in 2020.
Selling and distribution cost during the period under review reflected a 61% increase coming out at $2.8%. During the first quarter of 2021 operating expenses of $92.6 million were recorded, which was $1.6 million more than the prior year.
However, the company’s management was able to maintain a comparative 25% expense to revenue ratio, as in the prior year. Knibbs advised that the management will be maintaining its cost rationalization programme, as the company continues to capitalize on revenue opportunities.
Revenue grew marginally during the quarter
Revenues were $369.3 million, up from the $362 million posted last year, which is a two per cent improvement. All revenue segments showed improvements except for the lubricants division, which declined year-over-year.
Gross profit declined slightly moving to $111.1 million for the period under review coming from $116.3 million last year. Other income showed a big improvement, up 156% to $13.1 million coming from $5 million posted last August.In addition, Paramount will continue with the execution of its strategic plans, despite the challenges brought on by the pandemic.