Paramount Trading grows revenue, profit
Tameka Gordon, Business Reporter
Paramount Trading Jamaica Limited (PTL) grew revenues by 10 per cent for the year ending May 2014, moving from $642 million to $709 million.
The company saw pre-tax profits of $92.9 million over the $83.5 million it reported for 2013, an increase of $9.4 million.
Paramount is organised into four primary business units: a chemical operation which sees the distribution of its chemical products; a construction and adhesives division, through which it distributes the French-based SIKA line of construction products, including glues and sealants; a transportation arm, offering haulage services; and a manufacturing division which makes commercial cleaning agents.
The chemicals division, located on Waltham Park Road in Kingston, contributed 87 per cent of the company's 2014 revenues, a dip from the 90 per cent contribution reflected for the comparative period.
PTL's construction and adhesives division, a wholesale-distribution outlet which trades under the SIKA brand, is located at the company's Bell Road site in Kingston. The division maintained its six per cent contribution to revenues for the period.
The company operates both food and technical manufacturing arms. Its food grade manufacturing division operates from the Waltham Park Road, with the technical grade manufacturing processes out of its Bell Road facility. Manufacturing "accounts for approximately four per cent of revenue", the company revealed.
The recently added transportation division, housed at its Waltham Park Road complex, contributed three per cent to revenue.
The segment breakdown of the company's operations showed its chemical division remained its strongest revenue stream, closing the period at $616.9 million with gross profits of $195.7 million.
Revenues from the construction and adhesives segment stood at $44.5 million, with gross profit of $17. 5 million or 39 per cent of the segment revenues.
Additionally, revenues from the manufacturing division stood at $25.5 million, with $10.8 million in profits, reflecting a 42 per cent profit margin for the period.
PTL's revenues from transportation stood at $21.9 million, with gross profits of $5.3 million, reflecting a 24 per cent gross margin.
Hugh Graham, managing director of Paramount Trading Jamaica Limited.