Profit in the June quarter dipped to $881,000 compared with $4.3 million in 2014 for Consolidated Bakeries. For the six months profit was up to $14.8 million from $8.9 million as revenues climbed just 2 percent to $398 million. For the quarter revenues fell 11 percent to $171 million as there was a shift in sales relating to Easter occurring in first quarter in 2015 versus the second quarter in 2014.
“Furthermore in our efforts to streamline the company we initiated product rationalization this quarter, thus reducing non profitable items thereby contributing to gross profit increases. This initiative slowed sales growth, which we intend to grow in the coming months,” management stated in a report to shareholders accompanying the interim Financials.
“During the second quarter gross profit increased to $68 million compared to $61 million for the same period in 2014. It should also be noted that increased expenses impacted profit from operations. The majority of these expenses can be attributed to our increased marketing activities. We deliberately planned these activities to aggressively reposition our brands against other major players in the market. Our merchandising and promotional 
teams were expanded to support this new thrust. We believe these expenses are worthwhile for the long-term growth of the business”, the management’s report went on to state.
The improvement in gross profit in spite of the decline in sales is a big positive going forward as it will help to boost the bottom-line at a faster pace than before, if sales increase. Administrative cost rose 18 percent, well ahead of the growth in gross profit of 12 percent, to $41.5 million in the quarter and for the half year by 11 percent to $$79.8 million. Selling and distribution expenses rose 21 percent for the quarter to $26.4 million and for the six months grew 24 percent to $50 million.
Earnings per share came in at 7 cents for the half year but only 0.04 cents in the quarter, the full year results seems set to be around 10 cents.
The company added $20 million to fixed assets, had borrowings of $57 million and cash and investments of $122 million.
Consolidated Bakeries profit falters
Trackbacks
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[…] to close at $4.75, Caribbean Producers traded 59,990 units but fell 40 cents to close at $5.10. Consolidated Bakeries traded 3,000 units and gained 15 cents to close at $1.55, Derrimon Trading closed at $4.50 with […]
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[…] January 28, 2016 by IC Insider.com Leave a Comment http://icinsider.com/consolidated-bakeries-profit-falters/ […]
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[…] cents to $4.08, Caribbean Producers traded 6,000 units to close with a gain of 45 cents at $5.45. Consolidated Bakeries gained 15 cents to end at $1.45 with 2,922 units changing hands, Derrimon Trading had 3,135,140 […]
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[…] changing hands at $3.88, Caribbean Producers rose 1 cent in trading 40,000 units to close at $4.58, Consolidated Bakeries rose 10 cents with 38,000 shares changing hands at $1.30, Derrimon Trading ended with 100,000 shares […]
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[…] Producers gained 10 cents, in trading 44,922 units to end at $5.80 for a 52 weeks’ closing high, Consolidated Bakeries ended trading with 30,192 shares at $1.30. General Accident ended with 504,997 shares changing hands […]
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[…] new 52 weeks’ high, Caribbean Producers traded 60,000 units for a rise of 10 cents to end at $3, Consolidated Bakeries traded 15,000 shares, to end at $1.80 with a loss of 10 cents. Derrimon Trading rose 10 cents to end […]
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[…] changing hands, Caribbean Flavours traded 30,000 units trading at $3.08 for a 52 weeks’ high, Consolidated Bakeries ended with 1,649,784 units changing hands at $1.15, with a gain of 1 cent. Jamaican Teas had 2,282 […]
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[…] market is up 1.31 points to 1,025.34 and is not very far off from the all-time high of 1,040.59. Consolidated Bakeries had 962,000 shares trading at $1.10, Lasco Distributors had 68,350 units trading at $2. Mayberry […]
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[…] 5,670 units and added 15 cents to end at $2.70, Caribbean Producers traded 103,091 units at $2.50, Consolidated Bakeries traded 1,000 shares at $1.20, Lasco Distributors was up 10 cents to $1.80, with 8,134 units changing […]
[…] February 29, 2016 by IC Insider.com Leave a Comment http://icinsider.com/consolidated-bakeries-profit-falters/ […]