Consolidated Bakeries (Jamaica), which trades under the name of Purity, has made a big turnaround in fortunes in 2022 as a result of certain measures employed.
The baking company experienced a net profit of J$13.88 million for the year ended December 31, 2022, reversing the loss of J$17.64 million racked up in 2021. In the December quarter, Purity recorded a net loss of J$1.55 million compared to the J$10.62 million loss in the corresponding quarter in 2021.
Tax charge incurred for 2022 amounted to J$3.85 million relative to a tax credit of J$4.03 million in the prior year. Pre-tax profit of J$17.73 million was recorded for the year under review compared to a pre-tax loss of $21.67 million in 2021.
The company’s management has credited measures implemented to stem the losses for the turnaround in fortunes. These include beefing up sales by increasing the number of fleet vehicles and improvements to the company’s cash management policy.
Liquidated J$46.84 million overdraft
The measures also resulted in Purity being able to liquidate its J$46.84 million over draft. This was primarily due to changes made to its cash management policy.
Purity recorded a 27 per cent jump in revenue to J$1.37 billion, up from J$1.08 billion in 2021. For the fourth quarter, Purity recorded revenues worth J$323.53 million (2021: J$280.92 million), representing a 15 per cent increase.
Gross profit grew 26 per cent to J$536.88 million (2021: J$424.69 million) for 2022.
Total expenses rose 16 per cent to J$505.28 million compared to the J$435.91 million reported in 2021.
Notably, the main driver in total expenses was selling expenses, which went up by 33 per cent to close at J$203.45 million (2021: J$152.49 million). Finance costs rose by 39 per cent to J$16.27 million in 2022 versus J$11.74 million booked twelve months earlier.
Interest and other income closed the year at J$2.40 million (2021: J$1.30 million).
Purity, as at December 31, 2022, held total assets valued at J$1.08 billion, an increase of five per cent year-over-year when compared to J$1.03 billion in 2021. The increase was attributable to a J$11.08 million gain in ‘Inventories’ which closed at J$78.51 million (2021: J$67.43 million).
The company closed the period with Shareholders’ Equity totaling J$696.88 million (2021: J$682.21 million). As a result, the company now has a book value per share of J$3.13 (2021: J$3.06).