Purity Reports a 41.7% Contraction in Profit for the First Quarter
- Despite a 9.3% (or $25.42Mn) increase in revenues, Consolidated Bakeries Jamaica Limited (Purity) reported a 41.7% (or $6.07Mn) contraction in net profits for the first quarter ended March 31, 2020. Net profit was down to $8.47Mn (EPS: $0.04) from the $14.54Mn (EPS: $0.07) that was reported in the year prior.
- This outcome was primarily driven by a 9.6% (or $9.07Mn) growth in total operating expenses, a 50.4% (or $1.39Mn) increase in finance costs, and a 99.3% (or $825k) decrease in finance and other income.
- The stock has risen 2.4% since the start of the year, and closed trading at $1.70 on Thursday. At this price Purity currently trades at a P/B of 0.52x, which is below the Junior Market Manufacturing Sector Average of 2.03x.
(Source: Purity Financials)