Profit plunges at Paramount

Profit dropped sharply at the Junior Market distributor, Paramount Trading for the November 2023 half year to $82 million from $149 million in 2022 and plunged from $65 million in the November quarter 2022 to just $25 million in the latest quarter.  
Operating revenues declined by 27 percent to $439 million in the November quarter from $601 million in the similar quarter in 2022 and for the half year, revenues fell by 28 percent from $1.2 billion to just $865 million. The company generated nearly $15 million in other operating income for the quarter versus a loss of $3, million in 2022, with the half year bringing in $33 million up from $27 million in 2022.
The company’s management attributes the reduction in revenues and profits, “primarily in the food grade and SIKA-construction segments that resulted from a one-off supply challenge and the expiration of a large building project respectively”. They also indicate that “the technical grade segment which accounted for 52% of total revenue performed one percent above the prior year. The lubricant segment also performed well with a 10 percent growth in revenues.”
Gross profit declined at a slower pace than the fall in revenues with the November quarter suffering a 19 percent fall from $202 million in 2022 to $164 million in 2023 and for the half year it declined 17 percent from $435 million down to $363 million. At the same time, administrative, selling and distribution costs rose marginally by 2.5 percent in the November quarter to $120 million from $117 million in 2022 and for the half year it declined 1.2 percent from $242 million down to $239 million.
Profit resulted in 1.6 cents earnings per share for the quarter down from 4.2 cents in the similar period in 2022 and 5.3 cents for the six months to November, a fall from 9.6 cents in the prior year.