Rising expenses contributed to growth in losses
Jamaica baking company Consolidated Bakeries has sunken deeper in losses during 2021 aided and abetted by rising operational expenses.
Consolidated Bakeries, which trades under the name, Purity, grew its year end losses from J$14.42 million in 2020 to J$21.58 million for December 2021. In their fourth quarter ended December 31, 2021, Purity recorded a net loss of J$14.56 million, down from J$19.67 million in the corresponding quarter in 2020.
No taxes were incurred for the period under review in comparison to J$3.97 million in 2020. Purity recorded a pre-tax loss of J$21.59 million in 2021 compared to a pre-tax loss of J$10.45 million in 2020.
Pre-tax loss for the December 2021 quarter was J$14.56 million in 2021 compared to a pre-tax loss of J$17.31 million in comparable period in 2020. During for the past year the baking company recorded a nine per cent increase in revenue to J$1.07 billion from J$993.97 million reported in 2020.
Revenues for the fourth quarter went up to J$280.91 million from J$223.97 million, representing a year-over-year increase of 25 per cent. Cost of Sales for the year grew by eight per cent to J$653.04 million while Cost of Sales for the December quarter was up 23 per cent to J$166.62 million.
Total expense rising
The company reported total expenses of J$437.88 million, a 12 per cent increase when compared to the J$389.25 million reported in 2020. Of this, Administrative Expenses amounted to J$252.28 million, up 17 per cent relative to J$215.57 million reported in 2020.
Selling Expenses went up by nine per cent to close at J$152.66 million, up from the 2020 posting of J$139.93 million. Total expenses for the fourth quarter were up 25 per cent to J$126.58 million relative to the J$101.47 million reported in 2020.
The rise in total expenses translated into an operating loss of J$11.13 million for the year, compared to an operating profit of J$2.78 million documented in 2020. For the fourth quarter, Purity experienced an operating loss of J$12.29 million relative to an operating loss of J$13.44 million booked in 2020.
Finance Costs fell by 38 per cent to J$11.74 million versus J$19.04 million booked twelve months earlier. Interest and other income closed the period at J$1.29 million.
PURITY, as at December 31, 2021, held total assets valuing J$1.01 billion, an increase of one per cent year over year when compared to J$996.40 million in 2020. The increase was attributable to a J$17.46 million gain in ‘Inventories’ which closed at J$67.36 million (2020: J$49.90 million).
The company closed the period with Shareholders’ Equity totaling J$678.26 million (2020: J$693.51 million). As a result, the company now has a book value per share of J$3.05 (2020: J$3.11)