Declining sales and rising cost in the February quarter over the November quarter were the noticeable features for Paramount Trading. The result, lower profit only $26.4 million versus $49.2 million.
Profit nevertheless jumped 121 percent to $109 million for the nine months to February this year with the February quarter rising 82 percent over that of 2014.
The slippage in performance in the latest quarter came from a drop in sales to $209 million from $228 million in the November quarter and a fall in gross profit margin from 37 percent to 32 percent as cost of sales remained at roughly $146 million in both quarters. Total administrative and other expenses also rose in the last quarter over that of November by close to $6 million or 13 percent but they were lower than in the 2014 quarter as finance cost fell sharply from $8 million to only $2 million.
Total revenues rose 18 percent in the February quarter and 25 percent for the nine month period to hit $213 million and $651 million respectively.
The company reported earnings of 17 cents per share for the quarter and 71 for the nine months and is on its way to reporting profit of $1.10 per share for the current year ending in May and $1.50 for the following year.
Finances| Paramount has seen a slight improvement in receivables with a reduction in the number of weeks amounts are due for falling from around 10 weeks in February 2014 down to 9 weeks in 2015 even as the amount increased from $139 million to $151 million. Inventories rose to $275 million from $216 million in 2014 and cash funds rose to $79 million. Amounts due to suppliers is steady at $127 million with the 2014 year-end figures and down from the amounts due at February 2014.
The company deals mainly in chemicals and is listed on the junior market of the Jamaica Stock Exchange, the last price is $3.55, giving it a PE of 3.2 thus maintaining its BUY RATED status.
Paramount’s Q3 sales fell cost rose
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“The spot business that we landed in that quarter [2Q to Nov 2014] really assisted our sales,” Graham said of the one-off contract in an interview on Monday.
(Jamaica Observer, 2015-01-14 – http://www.jamaicaobserver.com/business/Paramount-to-embark-on-new-investment_18216036)