Paramount Trading reported lower profits and revenues in the first quarter ending August following what the company states is the conclusion of a major six month contract for admixture supplied to the construction sector. Revenues declined by 28 percent to $426 million from $595 million the previous year. Profits fell by 32 percent to $65 million from $97 million the last year.
Paramount
ICInsider.com forecast earnings of 27 cents per share for the current fiscal year ending May 2024. The stock traded on the Jamaica Stock Exchange Junior Market at $1.48 on Wednesday is valued at a PE of 6 times earnings based on the projected earnings and trades at just under two times the book value of 77 cents.
Gross profit declined by $23 million in the current year, down 10 percent from $203 million generated in the previous year, resulting in a gross profit margin of 42 percent, up from 34 percent in 2022. The company also generated other operating revenues of $19 million, down from $29 million in the last year. Administrative costs declined 7 percent from $123 million to $115 million this year. Selling and distribution costs increased from $2.6 million to $4.6 million this year. Finance costs climbed from $11 million in 2022 to $14 million in the current year despite a reduction in the total amount of funds borrowed.
Earnings per share came in at just under four cents for the quarter compared to just over 5 cents in the previous year’s quarter.
Container of Allegheny lubricant produced at the local plant
The company generated a positive cash flow of $77 million, which was reduced by an increase in working capital, amounting to $36 million and ended the year with cash funds of $144 million after paying $13 million toward a reduction in borrowed funds. At the end of August 2022, cash funds were $226 million and $121 million at the end of May this year.
Shareholders’ equity ended the period at $1.19 billion, up from $993 million at the end of August 2022 and long term borrowings were $115 million. Short term loans due to be paid within twelve months amounted to $338 million.
Current assets ended at $1.59 billion, and current liabilities were $902 million, resulting in net current assets of $683 million.