Paramount Trading in recovery mode
CEO of Paramount TradingLimited Hugh Graham standingin front of the company'sheadquarters.

After a moderate performance in 2020, Paramount Trading Limited (PTL) has begun to see a strong rebound in its manufacturing and distribution businesses as the economy reopened last year.

For the second quarter ending November 30, 2021, PTL saw its revenue improve by 31 per cent to $401.18 million.

The company's lubricants segment, which had been impacted by reduced industrial and transport activity, has started to see a return to normal business. Its food division experienced the strongest improvement in revenue growth for the quarter.

With a stable gross profit margin around 32 per cent, PTL's gross profit totalled $129.92 million along with a rise in total income to $139.46 million. Due to the company's cost-containment strategies, operating expenses only grew by four per cent to $94.30 million, which resulted in a 170 per cent growth in operating profit to $45.16 million.

Despite higher net finance costs, profit before taxation grew by 533 per cent to $32.66 million. Even with a steep increase in taxation costs, PTL's net profit increased by 533 per cent to $28.58 million.

Revenue for the six months of $770.49 million surpassed the company's record $768.22 million set in the November 2019 period. Net profit increased by 141 per cent to $47.50 million for the first six months.

As part of its key strategies for growth in the 2022 financial year, PTL has entered into contract-manufacturing agreements with various industry players and is looking to continue exports under the Export Max III programme.

Total assets grew by three per cent to $1.75 billion while total liabilities rose by two per cent to $908.52 million. Shareholder's equity was up by four per cent to $843.83 million. Operating cash flow decreased by 20 per cent to $69.60 million due to an increase in inventories and receivables for the period.

— David Rose

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