Paramount Records 50% Reduction in Net Profit

• Paramount Trading (Jamaica) Limited recorded a 50.2% (or $19.85Mn) year over year reduction in unaudited net profit to $19.70Mn (EPS: $0.013) for the six months ended November 30, 2020.
• The main drivers for this outturn were 13.0% (or $99.61Mn) and a 44.3% (or $10.15Mn) fall-off in revenues and other operating income, respectively. A 39.0% (or $6.90Mn) increase in net finance costs due to a rise in long-term liabilities also contributed to the lower net profit.
• The unfavorable performance of the aforementioned drivers was tempered by a 15.8% (or $84.84Mn) reduction indirect expenses and a 4.8% ($9.13Mn) drop in operating expenses. The company continues to benefit from its efforts at cost rationalization and restructuring during this time.
• The company’s stock price has fallen by 13.8% since the start of the year, closing Thursday’s trading session at $1.25. At this price, the stock currently trades at a P/E of 59.5x earnings, which is above the Junior Market Distribution Sector Average of 20.7x.

(Source: Paramount Financials)