Everything Fresh jumps 44% last week

August 22, 2022 by

Last week’s stock to watch, Everything Fresh, climbed 43.5 percent from $1.17 to close the week at $1.68 and should move higher and Future Energy Source, that reported fabulous results for the first quarter, was one to watch. The stock added to the $5.29 price it closed the previous week at and closed on Friday at $5.63, with a PE ratio of 22.5.

Everything Fresh traded at $1.68 on Friday to gain 43.5% for the week.

This week, Consolidated Bakeries is added to the list, following excellent half year results, with prospects of more gains ahead, but General Accident is out following a bump in claims in the second quarter that squeezed profit. Also added to the list is ONE on ONE Education Services, which should list this month and enjoy a significant price hike.
138 Student Living reported strong June results but hardly moved in a week that the markets suffered declines. Meanwhile, Stationery and Office Supplies pulled back a bit as demand weakened following good half year results.
This week’s other ICInsider.com watch listings are Caribbean Assurance Brokers, Caribbean Producers, Dolphin Cove, Express Catering, Guardian Holdings, Jamaica Broilers, Lasco Distributors, Lasco Manufacturing, NCB Financial and Paramount Trading.
Dolphin Cove, Caribbean Producers, Express Catering and Everything Fresh will be major beneficiaries of the strong rebound in tourist arrivals, now back to 2019 levels.
Refunds should start returning to investors from ONE on ONE Education Services this week now that allocations in the recent IPO are determined. That could make a big difference to the market as investors deploy those funds in the market.

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Has Purity broken negative spell?

August 21, 2022 by

For many investors, Consolidated Bakeries wasted the ten years of tax holidays garnered in listing on the Junior Market back in December 2012 as profits pretty much stagnated at very low levels and moved into losses occasionally. But those dark days may well be behind, if recent quarterly results to June are to be believed.

Consolidated Bakeries Purity brand

The improved results show up in a strongly transformed financial position resulting in an enhanced working capital position even as sales surged, a buildup of cash and a reduction in borrowed funds.
Revenues climbed 30 percent in the March quarter, from $291 million last year to $378 million and rose a more robust 42 percent in the June quarter to $342 million from $241 million in 2021. For the six months, revenues are up 35 percent to $720 million from $532 million in 2021, while gross profit rose 41 percent to $292 from $207 million. At the same time, in the recent past, gross profit margin tended to hover around 39 percent, rose to 42 percent in the second quarter this year, from 38 percent in 2021.
Profit before tax rose 61 percent in the first quarter to $14.5 in 2022, from $9 million last year and is up 200 percent in the second quarter to $13.5 from a loss of $13.4 last year. For the half year, pretax profit surged 735 percent to $28 million from a $4.4 million loss in 2021.
Purity, as the company is more popularly known, generated a loss in other comprehensive income from investments of $2.65 million for the quarter and $3.57 for the half year, reducing the overall profits to $10.8 million for the quarter and $26 million for the half year.

Anthony Chang, Managing Director of Consolidated Bakeries

Administrative and other expenses rose 11 percent to $66 million in the quarter and increased 18 percent in the half year to $139 million. Marketing and sales expenses increased by 33 percent to $50.5 million in the June quarter over 2021 and are up 30 percent to $97 million for the six months of 2022. Depreciation rose 10 percent in the June quarter to $8.6 million and 8 percent for the half year to $17 million. Finance cost jumped sharply in the quarter to $7 million from $2.5 million in 2021 and from $6.3 million to $9.4 million for the six months.
The company’s finances are looking much better at the end of June than in 2021, which is undoubtedly helped by management’s renewed focus on these areas. Operations for the half year generated gross cash flow of $47 million and to $77 million with changes in working capital but slipped to $56 million after receiving an $11 million loan and spending $29 million on the purchase of fixed assets. Shareholders’ equity stood at $708 million, while Long term borrowings ended the period at $167 million and short term loans at $42 million, representing a reduction from December 2021 of $25 million and cash and bank balances rose to $82 million, up from $62 million at the end of December last year. Current assets ended the period at $295 million, with trade and other receivables at $105 million, a reduction from $115 million at the end of June 2021 and $110 million at the end of December 2021, even as sales surged. Inventories doubled over June 2021 from $41 million to $81 million and are up from $67 million at the end of December. Current liabilities ended the period at $181 million, up from $175 million at the end of December but down from $190 million in June 2021. Net current assets ended the period at $115 million and are well up on the $69 million at the end of June 2021 and $93 million in December last year.
The big concern in the past was the ability of the company to hold on to the profit made in the first six months in the year’s second half. This time seems set to deliver to the upside as revenues benefit from increased volume sales as the company makes headways into new areas and some new products. Anthony Chang stated that while new products helped sales, in some cases, traditional products found new takers in regions of the country where demand was not as strong in the past.

Consolidated Bakeries Miss Birdie Easter bun.

According to Chang, they are now benefiting from some personnel changes that are delivering improved results. He also indicated expansion of the distribution channel into smaller stores while consolidating the business in the bigger stores. They also placed focus on the cost by employing a cost accountant. The company still faces challenges, Chang informed ICInsider.com; most flows from the economic environment businesses face locally with the supply chain for raw materials for production.
Retooling played a vital role in the gains, but Chang says this is a work in progress. According to him, bread at one stage in the past accounted for 90 percent of sales, was in direct competition with the market leader and had a low profit margin, but it took time to make the shift as new machinery was needed to effect the change to new products, that needed machinery for packaging these products. The company has been adding to fixed assets as a part of the drive to have suitable machines and in quantity required to churn out new products.  In the 2022 half year, $29 million was spent on fixed assets, up from $21 million in the six months to June last year and $33 million for the financial year 2021.
As Chang indicated, July is showing growth in sales over last year, but while he is unsure where they will end the year, he is cautiously expecting some growth in the rest of the year.
Analysis done by ICInsider.com shows that over the past two years, the first quarter has had the highest revenues, with the second quarter 82 to 90 percent of what the first quarter generates. This year was somewhat different at 90 percent, no doubt due to Easter falling in the middle of April, that would have resulted in more Easter bun sales coming in April than in 2021 and moved the percentage from 83 to 90. The September quarter revenues year were 111 percent of the second quarter and was up from 93 percent in 2021, with December at 105 percent of 2021 September and 99 percent in 2020. Based on the above, ICInsider.com projects this year’s revenues at $1.4 billion, with a profit of $49 million for earnings per share of 22 cents. If achieved, the PE ratio currently would be 6.8, based on the price of $1.49, the stock traded on the Jamaica Stock Exchange Junior Market on Friday. The numbers pushed Consolidated Bakery in the lower end of ICInsdier.com TOP10.

Filed Under: Buy Rated, Company News, Company Results Tagged With: , , , , ,

Shift in Easter impact Purity

July 7, 2019 by

Consolidated Bakeries Miss Birdie Easter bun.

Consolidated Bakeries profit dropped sharply for the March 2019 quarter as the company suffered an estimated $50 million shift in some Easter sales coming in April compared to March in 2018.
Quite a bit of Easter bun sales will show up in the second quarter and should help to boost the quarter and half year the profit.
Unaudited financial statements, showed profit declined sharply by 34 percent to $13.5 million in the March 2019 quarter from $20 million after tax in the 2018 first quarter.
Revenues increased marginally to $273.6 million for the 2019 quarter from $271 million in 2018 but the shift in Easter to mid- April affected sales. Direct operating cost rose 2 percent to $161 million, resulting in gross profit ending at $112 million similar to that of 2018, but gross profit margin slipped slightly, to a still healthy 41 percent compared to 42 percent for the same period last year.
For the quarter, administrative and other expenses moved up 3 percent to $50 million, depreciation was flat at $7.5 million while Finance cost declined 14 percent to $2.8 million compared to the 2018 March quarter.
Earnings per share came out at 6 cents for the March 2019 quarter, down from 9 cents for the corresponding quarter in 2018. IC Insider.com forecast 25 cents in earnings per share for 2019 as sales rise in double digits going forward and that should provide a decent lift for the stock price that has languished around the $2 mark for a long time. The stock traded at $1.80 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 7 times 2019 earnings.
Gross cash flow, brought in $23 million but growth in inventories and receivables, purchase of fixed assets, reduced cash funds of net of overdraft at $46 million at the beginning of the year to $24 million at the end of March. Shareholders’ equity stood at $733 million with borrowings at $167 million. Net current assets ended the period at $114 million inclusive of trade and other receivables of $112 million, as well as cash and equivalents of $79 million. The company ended the quarter with current liabilities of $185 million.

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3 new stocks now in IC TOP 10

June 9, 2019 by

Stocks mostly closed higher on the Jamaica Stock Exchange during the past week as Lasco Financial returns along with Caribbean Cement and Sagicor Group.
Leaving IC Insider TOP 10 at the end of the week are Everything Fresh, Jamaica Broilers and Sygnus Credit Investments.
Rising stock prices in the last week help in reducing the projected gains in to leading stocks compared to position at the end of the prior week. The three leading Junior Market stocks for the coming week are, Caribbean Producers with projected gains of 227 percent, followed by Iron Rock with likely gains of 213 percent and AMG Packaging with possible gains of 202 percent.
Sterling Investments with potential gains of 203 percent leads main market stocks, followed by Radio Jamaica with 150 percent and Berger Paints in third spot with the potential to gain 147 percent within twelve months.
The main market, closed the week with the overall PE at 14.8 and the Junior Market at 11.2. The PE ratio for Junior Market Top 10 stocks averages 7.2 and the main market PE 8.8. These levels, point to a big upside for TOP 10 stocks over the next 12 months and Junior Market stocks in particular.
The TOP 10 stocks now trade at an average discount of 36 percent to the average for the Junior Market Top stocks and main market stocks trade at a discount of 41 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Projected earnings, for each company’s current fiscal year, are used in determining, the selected stocks. The PE for and projected earnings for each stock are computed to show potential gains for the year, which are ranked in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis as new information is received that can result in changes in and out of the list.

This report is compiled by persons who may have interest in the securities commented on.

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IC Top 10 delivered rich 2018 gains

December 30, 2018 by

Barita Investments set to be 2018 best performing JSE stock.

With just one trading day left to go, before the 2018 ends, IC Insider.com TOP 10 selections enjoyed some healthy gains during the year, with former top tenner Barita Investments set to top the year with stunning gains of 567 percent. Palace Amusement moved up 159 percent to $1,450 and Salada Foods with 218 percent gain.
In the Junior Market, CAC2000 climbed 160 percent, Caribbean Flavours rose 73 percent and Stationery and Office Supplies gained 64 percent. The TOP 10 also saw others with lesser gains than the above ones. The list includes Caribbean Cement, NCB Financial, Pan Jam Investments, Grace Kennedy, Sterling Investments, with all of them trading at record highs during the year, Iron Rock, Key Insurance and General Accident. The outstanding performer in the Junior Market for 2018, Derrimon Trading was on the TOP 10 list on November 17, last year, but moved to $8 from $6.50 at the end of the following week and then exited the list and climbed in 2018 after a stock split and acquisition of new business.
Lasco Financial is back in the Junior Market list, having fallen to $4.50, so too is Consolidated Bakeries with the price down to $1.75 and Stationery and Office Supplies with a price mow at $8.10. Out goes Medical Disposables, with the price at $7.50 along with Iron Rock and Jamaican Teas. In the main market TOP 10, Sagicor Group returns to the list replacing Sterling Investments that closed the week at $4.09.
The main market and the Junior Market closed the week with the overall PE at 15.9. The PE ratio for Junior Market Top 10 stocks average 9.2 and the main market PE is now 10. The top Junior Market stocks continue to sell at a discount to main market stocks even as the overall average PE for both markets are equal. This is an indication that there may be more gains to be had from these Junior market stocks than those in the main market.
The TOP 10 stocks now trade at an average discount of 42 percent to the average for the Junior Market Top stocks but it’s a third of what the average PE for the year is likely to be of 20 times earnings. The main market stocks trade at a discount of 37 percent to the overall market.
TOP 10 stocks are likely to deliver the best returns within a 12 months period. Stocks are selected based on projected earnings for each company’s current fiscal year. Based on an assumed PE for each, the likely gains are determined and then ranked, with the stocks with the highest potential gains ranked first followed by the rest, in descending order. Potential values will change as stock prices fluctuate and will result in movements of the selection in and out of the lists for most weeks. Earnings per share are revised on an ongoing basis based on new information received that can result in changes in and out of the list as well.

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Cost control boost Purity’s profit

August 21, 2018 by

Consolidated Bakeries (Purity) recovering from 2017 loss

Cost fell and profit margin rose at Consolidated Bakeries in the June quarter, this year, as the company put in a vastly better performance in the quarter than for the similar period in 2017.
For the half year, administrative, selling and distribution cost rose just 2 percent to $166 million but declined 6 percent to $79 million in the June quarter. While sales revenue grew 10 percent for the six months to $493 million and less than one percent to $221.5 million in the latest quarter. Input cost climbed just 3 percent for the half year, compared to 2017 and fell 4 percent for the quarter, giving rise to increased profit margin in the first half of the year to 38 percent, from 34 percent in 2017 and in the June quarter, to 35 percent from 31 percent in the year ago period.
Profit rose from a loss of $8.5 million in 2017, for the six months to June, to a profit of $22.6 million this year and earnings per share of 9 cents, but the company is reporting a loss of just $891,000 after tax credit of $128,000, a big improvement over the loss in the prior year’s quarter of $14 million. Full year’s profit should end at around 17 cents per share. If achieved, it would be the first time since the year it listed that profit has been this high.
Administrative expenses fell 13 percent to $42 million in the quarter and increased marginally in the six months period to $92 million from $91.6 million. Distribution and sales expenses declined 4 percent to $33 million. Finance cost rose in the quarter, to $3.6 million from $812,000 in 2017 and from $2.5 million to $6.8 million for the half year.

Consolidated Bakeries Miss Birdie Easter bun.

Gross cash flow brought in $38 million but growth in receivables, inventories, addition to fixed assets of $35 million offset by loan inflows and increased payables position ended at a negative $3 million. At the end of June, shareholders’ equity stood at $736 million with borrowings at just $115 million. Net current assets ended the period at $100 million inclusive of trade and other receivables of $96 million, cash and bank balances of $99 million. Current liabilities ended the period at $140 million.
The stock traded at $2.17 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 12 times 2018 earnings. Net asset value is $3.31 with the stock selling at just 66 percent of book value. The company is the only Junior Market stock to be selling at a discount to net asset value. This means management has a lot of work to do to break even and much more to reach the average of the market of a premium of more 400 percent.

Filed Under: Company News, Company Results Tagged With: , , , , , ,

Purity can turn around 2017 loss this year

April 1, 2018 by

Consolidated Bakeries (Purity) make a loss in 2017 but could return to profit in 2018.

Profit melted away at Consolidated Bakeries for 2017 with a loss of $40 million down from a profit of $10 million in 2016 from sale revenues that slipped from $880 million to $863 million.
The company continued the loss right through to the year with a loss of $9 million before differed tax charge in the final quarter but the 2017 loss was lower than the loss of $20 million in the same period in 2016. Closer examination of the results show hope for the company going forward, into 2018
While revenues for the year fell 2 percent it rose 10 percent in the December quarter and helped to improve gross profit to 39 percent from just 31 percent in 2016 quarter. The 2017 final quarter was also much higher than the 35 percent for the full year.
Cost appeared mixed, with marketing and sales expenses rising 31 percent to $55 million and 17 percent to $158 million as this category of cost out stripped revenues by a big margin.
Administrative expenses fell 41 percent to $23 million in the quarter and fell 3 percent for the year to $158 million. Finance cost jumped in the quarter, to $16 million from $7 million, in 2016 and from $12 million to $19 million for the year.

Consolidated Bakeries Miss Birdie Easter bun.

Revaluation of the Jamaican dollar cost the company $4 in the final quarter and resulted in reduction in other income ending with a negative $2.5 million versus $5.5 in 2016 and just 875,000 for the full year versus $9 million, while the big jump in Finance cost in the December quarter seems to be one off, as such without these two items the company would have reported a profit for the quarter and augurs well for the 2018 results.
Gross cash flow was negative $7 million but growth in receivables, inventories, addition to fixed assets and drawn down on investments was offset by net loan inflows and increased payables and increased in bank overdraft ended at $74 million. At the end of December, shareholders’ equity stands at $716 million which was boosted by gain on revaluation of land and building by $206 million. Borrowings at just $135 million. Net current assets ended the period $92 million well over payables of $77 million.
Earnings per share was negative for the quarter and the fiscal year. The stock traded at $2 on the Junior Market of the Jamaica Stock Exchange with a PE ratio of 12 times 2018 estimated earnings of 17 cents. Earnings could be more if revenues were to increase above 10 percent for 2018.

Filed Under: Company News, Company Results Tagged With: , , , ,

Bun sales shift hit Consolidated

May 13, 2017 by

Consolidated Bakeries (Purity) closed down form record high of $4.50 in 2017 to $2.40 on Friday.

Consolidated Bakeries suffered a reversal in fortunes in their first quarter results to March this year, with Easter falling in mid-April compared to the end of March last year, resulting in revenues falling to $228 million from $261 million last year and profit falling from $22.8 million down to $5.8 million in the latest quarter.
Earnings per share end at 3 cents in 2017 and 10 cents in 2016, for the fiscal year ending December last year the company reported just 5 cents per share in earnings. In the December quarter the company doubled Selling and Distribution cost resulting in a rise of $22 million while revenues rose by just $3 million pulling a profit of $30 million at the third quarter down to just $10 million. For the March quarter, cost in this area came in at $33 million closer to the quarterly spend for 2016 but for December quarter with spend of $43 million.
Administrative, Selling and Distribution cost were effectively flat during the quarter, at $76 versus $73 million in the 2016 period. Gross profit margin declined to just over 36 percent compared to 37 percent in 2016, but gross profit fell $14 million to $82.4 million.
In the 2016 June quarter, revenues were just $210 million and generated $4.3 million in profit. With Easter bun sales taking place mostly in April, the company should see revenues popping around $60 million and profits by around $20 million for the current quarter.
Consolidated ended with cash funds of $148 million and borrowings of just $128 million with shareholders’ equity standing at $553 million. The company has current assets of $271 million and current liabilities of $159 million.
The stock is listed on the Junior Market of the Jamaica Stock Exchange and last traded on Friday at $2.40 and is down from a high of $4.50 earlier this year.

Filed Under: Company News, Company Results Tagged With: , , ,

Junior stocks surge in early trading – Tuesday

January 10, 2017 by

The junior market of the Jamaica Stock Exchange surged sharply on Tuesday morning, putting the years’ gains to 5.7 percent, as three juniors stocks traded at new highs. The main market fell appreciably with the All Jamaica composite index falling by nearly 1,000 points, with the other major indices declining as well.
Market activity has been moderate so far and resulted in 33 securities traded at 10:45 am, compared to 31 on Monday. A total of 13 securities advanced and 9 declined, resulting in a volume of 1,528,996 shares changing hands, carrying a value of $12,730,951, compared of 842,68 shares changing hands, carrying a value of $7,961,875 on Monday. The average number of shares traded, amount to 46,333 units versus 27,183 units on Monday.
Market activity was helped by Cargo Handlers trading at a new high of $20 with 27,765 units changing hands, Consolidated Bakeries traded 193,390 at a new high of $2.60 and Derrimon Trading had just 2,500 units trading at a new high of $6.
The all Jamaica Composite Index lost 851.92 points to 212,380.07, the Jamaica Stock Exchange Market Index fell 761.78 points 194,280.11 the Jamaica Stock Exchange combined index dipped 562.69 points to 208,112.16 and the junior market index rose 33.74 points to 2,739.37.

Filed Under: JSE Combined, Stock Market Tagged With: , , , , , , , ,

Lasco Distributors hits junior index – Wednesday

July 28, 2016 by

Lasco Distributors fell initially to $6.55 and headed back to $7.40 and helped hit the junior market index down by 41 points, but main market stocks also slipped but marginally.JSE intra 28-07-16 The fall in the Lasco share price was in reaction to the company’s first quarter profit after tax of $175.4 million, or 33% more than the same period in 2015.
The market saw Scotia Investments trading 100,000 units at $25.01, JMMB Group 7.50% preference share traded 90,000 units at $1.10, Pan Jamaican Investment had 74,764 shares changing hands at $24.50 and Consolidated Bakeries traded 185,000 units at $2.15.
The all Jamaica Composite Index fell 29.18 points to 176,604.86 the Jamaica Stock Exchange Market Index is down 26.10 points to 158,957.91, the Jamaica Stock Exchange combined index declined 409.09 point to close at 169,565.09 points andthe junior market index dropped 37.51 points to 2,155.92.
Trading at 10:45 am resulted in only 22 securities changing hands, accounting for a volume of 663,102 shares, with 7 securities rising and 7 falling. The average number of shares traded amounts to 30,141 units.

Filed Under: JSE Combined, Stock Market Tagged With: , , , , , , ,