Paramount Trading Limited records Dip in Profit

  • For the nine-month period ended February 28, 2019, Paramount Trading Limited reported an unaudited net profit of $45.5Mn (EPS: $0.03) which represents a 31.6% decrease relative to the corresponding period in 2018
  • The decline in profit was primarily driven by an increase in administrative expenses (+25%), from $215.5Mn in 2018 to $270.1Mn in 2019 coupled with an increase in selling & distribution expense (+18.9%) and the application of a $2.03Mn tax on the company. Notably, the company is now in the 6th year of trading and therefore income tax is now calculated on the profit.
  • The stock has fallen 25.9% since the start of the calendar year closing at $2.15 yesterday. At this price, PTL currently trades at a P/B of 4.6x which is above the Junior Market Distribution Sector average of 3.5x.

(Source: PTL Financials)