Having undergone change in its culture since listing, Purity bread maker, Consolidated Bakeries boosted its first quarter profit by 58 per cent.

The new comer to the Jamaica Stock Exchange (JSE) Junior Market posted $14.2 million in profit before tax for the three months to March 31, up from $9 million in the comparative period last year.

And given that it got a tax break from going public, the bakery didn’t record any corporate tax during the review period versus the $4.5 million that accrued to the Government in the first quarter of 2012.

Purity’s real growth came from the focus on operations, according to Anthony Chang, the company’s managing director.

All key product lines grew this quarter, Purity said in its financial report.

“We are more focused on our results and there is a ethos involved in the company especially after you do an IPO,” said Chang. “We spent a lot of time on planning … we distributed better and that allowed us to get to market on time.”

The company’s revenue grew from $140 million during the first quarter of 2012 to $172 million during the review quarter.

The new computerised distribution system, which allows it to plan its distribution, also positively impacted revenues, while it expanded the bakery’s reach into retail stores.

Its products are almost entirely in supermarkets now, while Purity plans to distribute to more areas and expand its route.

Opportunities are available in smaller stores and institutions, areas where the company also plans to grow in.

Meanwhile, products are being developed to increase exports, these items will meet the steps in terms of shelf life and quality, Chang told the Business Observer.

Planning, organisation and more efficiency will help the company keep expenses and cost of sales down.

Purity spent $50.4 million on operating expenses during the three months ended March 31, 2013, 16 per cent more than the comparative period last year.

Cost of sales increased by 26 per cent to $109 million.

The operating expenses to sales ratio improved — falling to 29.3 per cent compared to 31. 2 per cent from the previous year — as sales grew faster than expenses, the company said.

In terms of its input push this year, the cost will go up but Purity has been carefully managing that, Chang said.

For instance, members of staff come up with ideas on how to cut cost.

“That has helped to reduce the cost such as the number of inefficiency within the plant, such as damages and other issues we’ve had in the past,” he said.

It ensures that its stock house isn’t overstocked, and careful attention is paid to products that are returned to the bakery. But the computerised system can help with that.

“We can manage that process better, we know now how many products we have in a store,” Chang said. “We can do analysis, look at the data and help ourselves to plan and distribute better.”

To be efficient is a continued process.

Apart from re-tooling its bakery, improving its distribution network, and repaying some debt, the company also plans to “find productive use” for its unused real estate at its four-and-a-half acre property off Red Hills Road, where its administrative offices, plant, garage, and distribution facilities are located.

A comprehensive programme will be put in place for the company’s unused real estate, Chang said.

Until then, time and effort will be put into the Purity’s core business, and how to get the products in demand.

It produces a range of products such as hard dough bread, sliced wheat and white bread, Easter buns and non-Easter buns, single serve snack items such as buns and breads as well as hot dogs.