Business
JM | Jul 30, 2022

Paramount reports 174% increase in year-end net profit

/ Our Today

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Paramount Trading Limited’s Bell Road main offices in Kingston, Jamaica. (Photo: Facebook @ParamountJamaica)

Durrant Pate/Contributor

Shareholders in Jamaican lubricant company, Paramount Trading Limited, are smiling upon news today that shareholders’ profit at year-end has grown by 174 per cent to $174.57 million.

This is up from J$63.64 million reported in 2021. Taxes levied for the year ended May 2022 amounted to J$11.74 million relative to J$2.28 million in 2021.

Net profit attributable to shareholders for the fourth quarter amounted to J$79.62 million compared to J$35.89 million documented in 2021. Pre-tax profit for the year totalled J$186.31 million, 183 per cent more than the J$65.92 million for 2021.

Paramount Trading recorded a 19 per cent increase in total revenues to J$1.72 billion from J$1.44 billion in 2021. For the May quarter, revenues amounted to J$482.49 million, up from J$421.75 million.

Direct expenses closed the period at J$1.15 billion relative to the J$983.20 million booked a year ago. 

Big jump in other operating income

Other operating income amounted J$75.86 million for the year, representing a big 234 per cent increase when compared to J$22.68 million in 2021. For the final quarter, other operating income totalled J$42.29 million versus J$3.91 million in 2021.

Administrative expenses rose 10 per cent to J$391.29 million, up from J$355.14 million in 2021 while selling and distribution expenses grew to J$17.64 million (2021: J$10.55 million). Operating profit closed the year at J$229.34 million versus J$111.40 million in 2021 while for the quarter, it was J$88.87 million, up from J$43.66 million in 2021.

Finance income amounted to J$3.66 million, down four per cent when compared to the J$3.80 million reported for the prior year, while finance costs contracted to total $46.70 million (2021: J$49.28 million). As at May 31, 2022, the company’s assets totalled J$1.93 billion, J$273.60 million less than the J$1.65 billion quoted a year ago.

The main contributor to this growth was the increase in ‘Inventories’ which closed at J$670.84 million relative to J$412.78 million a year ago. In addition, ‘Cash at bank’ contributed to the growth amounting to J$125.55 million, a 38 per cent uptick relative to the J$90.93 million recorded in 2021.

Shareholder’s equity as at May 31, 2022 stood at J$909.20 million (2021: J$796.33 million) resulting in a book value per share of J$0.589 (2021: J$0.516).  

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