Business
JM | Nov 23, 2021

Purity reports nine-month net loss of $7.02 million

/ Our Today

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Slight 4% increase in revenue to $798.88 million

(Photo: Facebook @PurityBakeryJamaica)

Consolidated Bakeries (Jamaica), which trades under the name Purity, continues its poor financial showing with nine-month losses for 2021 amounting to $7.02 million.

The company recorded pre-tax loss of $7.02 million and with no taxes incurred for the nine-month period under review; this resulting in a net loss of $7.02 million versus a profit of $5.24 million for the comparable period in 2020. Pre-tax loss for the September third quarter closed at $2.61 million in 2021 compared to a pre-tax loss of $3.02 million in 2020.

For the third quarter, Purity booked a net loss of $2.61 million in contrast to a loss of $2.64 million for the corresponding quarter in 2020. As a result, loss per share (LPS) for the nine months amounted to $0.03 compared to an earnings-per-share (EPS) of $0.02 reported in 2020.

Consolidated Bakeries, for the nine months ended September 30, 2021 recorded a four per cent increase in revenue to $798.88 million coming from $770 million reported for the corresponding period in 2020. For the third quarter, the company recorded revenue of $266.57 million, up from the 2020 booking of $226.38 million, representing an 18 per cent increase. 

(Photo: Facebook @PurityBakeryJamaica)

Cost of sales for the period fell by five per cent to close at $486.42 million. For the September quarter, Purity recorded cost of sales of $160.96 million, down 20 per cent relative to $134.44 million booked at the end of the third quarter for 2020.

Expenses climbing up

The company reported total expenses of $311.30 million, an eight per cent rise when compared to the $287.79 million reported in 2020. Of this, administrative expenses amounted to $177.81 million, up 12 per cent relative to $159.27 million reported in 2020.

Selling Expenses went up by four per cent to close at $109.39 million, moving up from $104.94 million in 2020. Total expenses for the third quarter amounted to $105.33 million relative to the $92.98 million booked in 2020.

Products from Purity Bakery, which trades as Consolidated Bakeries (Jamaica) Ltd.

Finance Cost fell by nine per cent to close at $9.43 million versus $10.40 million booked 12 months earlier. Interest and other income closed the period at $1.26 million, 22 per cent above the $1.03 million recorded for the nine months ended September 30, 2020.

Balance Sheet at a glance:

Purity, as at September 30, 2021, recorded Total Assets of $1.01 billion, an increase of one per cent year over year when compared to $999.27 million booked last year. The increase was attributed mainly to a 19 per cent expansion in ‘Investment’ which closed at $27.81 million (2020: $23.30 million).

Notably ‘Cash and Cash Equivalents’ and ‘Property Plants and Equipment’ recorded growth amounting to $63.86 million (2020: $72.35 million) and $764.44 million (2020: $765.88 million), respectively. The company closed the period with Shareholders’ Equity in the amount of $688.21 million (2020: $713.16 million).

 As a result, the company now has a book value per share of $3.09 (2020: $3.20).

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