Paramount Trading just notched its best quarterly revenue performance in over 30 years.

The company recorded a 60% increase in revenues from $369 million for the first quarter of its last financial year to $595 million for its current financial year. 

Speaking on Taking Stock with Kalilah Reynolds, Investment Research and Sovereign Risk Analyst at JMMB Group, Leovaughni Dillion, also noted that the company recorded an impressive 343% increase in net profits.

Paramount Trading is one of Jamaica’s largest manufacturers and distributors of chemical raw materials. The company supplies a wide range of industries, including food and beverage, construction, hospitality, and mining.

It also operates Stamina Trucking and Transportation Haulage, which helps maintain its distribution network. 

Dillion said that the company’s performance is particularly impressive because it was a result of organic growth.

“The growth was all organic, meaning it was not the result of some one-off occurrence,” he said.

According to the analyst, the company contained most of its expenses, such as administrative costs, which helped to keep the profits high. 

“So while these costs are up, they are not up so high as to impact the revenues,” he said. 

The rapid reopening of many sectors which the company serves may have also contributed to the company’s higher revenues.

Dillion also noted that Paramount has some US dollar-based liabilities. He said the company may have benefited from the strengthening of the Jamaica dollar against the US. 

Additionally, Dillion noted that the stock price has also been performing well. 

Paramount was listed on the Junior Market of the Jamaica Stock Exchange in 2013 and is approaching the end of the 10-year tax break offered by the exchange.

“The stock price is performing well. It is up 62% for the year beating the Junior Market, which was up 20%,” he said.

“And it’s been above the overall market for most of the year. There’s a couple of points when it fell below the market,” he added.

Overall, Dillion said he expects to continue to hear good news about this company as they are already on track to beat their full 2021 financial year performance.

“For their FY 2021 ending May, they made about $175 million in profits and just in this first quarter they made $83 million,” he said.

“There’s not much to be negative about in this earnings report, because they did most of this good performance in a sustainable way,” he added.

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