CONSUMERS bought more Purity, Miss Birdie and Hearty Goodness baked goods in the June quarter, which translated to a 474 per cent year-on-year rise in profit to $10.6 million for brand owners, Consolidated Bakeries .
Revenues, which hit $156 million in the quarter, were up 40 per cent year over year, due to windfalls from increased marketing.“These increases represent real growth in volumes across our key items and primarily a result of activities in distribution and market programmes,” indicated Anthony Chang managing director in notes accompanying the second-quarter financials released this week.The rise in its marketing spend, although undisclosed, resulted in a marginal rise in its operating expenses-to-sales ratio at 29.7 per cent for the half year versus 29.6 per cent for same period last year.“Given the uncertain economic situation and desire to have tactical flexibility, maintaining a good liquid position is important. During this quarter focus was placed on in-store marketing programmes. These programmes gained additional retail presence helping same store sales results,” added Chang.Chang also indicated that the Miss Birdie brand gained increased online visibility.“We created additional social media presence for Miss Birdie brand, which has been well-received. Our active presence on social media has assisted our brand growth and reach,” he stated.The company noted that it benefited from increased efficiencies with gross margin percentage increasing to 36.1 per cent compared to 34.2 per cent for the same period last year.The bakery’s managing director also noted that the company’s working capital position improved in this period to $122.9 million, which was 349 per cent higher than year-earlier levels.Chang also hinted at prospects for increased overseas sales. The company already exports to the Jamaican Diaspora, but overseas sales still account a small fraction of total sales.“Our trade team conduct[ed] trade visits in North America which resulted in potential trade opportunities,” wrote Chang.The Kingston-based bakery raised some $100 million and listed on the Jamaica Stock Exchange Junior Market in December 2012. The proceeds of the IPO improved its working capital and operational processes.The company was incorporated in 1957 following the consolidation of three existing bakeries: Valentine Bakery, owned by the Chang family; Powell’s Bakery, owned by the Powell family; and Huntington Bakery, owned by the Seivright family.In 1972, the Chang family members acquired the shares of the Powell and Seivright families and since then, have owned and operated the company.View the original article here
Purity"s profit past $10 million
