Paramount Trading (Jamaica) Limited swung back to profit in the second quarter (Q2) ended November 30, 2025, notching net earnings of $31.1 million compared with a $10.8 million loss a year earlier.
Hurricane Melissa which struck the island on October 28, “resulted in both a reduction of the number of sale days for October, as well as a drop in purchases in November by customers”, stated Paramount in the preface to its financial statements.
Earnings per share came in at $0.020, versus a loss of $0.007 in Q2 2024. For the six months, the chemicals and lubricants distributor reported net profit of $86.4 million versus a $48.7 million loss in the prior period, lifting half-year EPS to $0.056.
Revenue softened by 3.4 per cent to $385.7 million – as management flagged the lost selling days from Melissa. But the top-line dip was more than offset by rising margin reflected in a 14.4 per cent fall in direct expenses, which expanded gross profit to $157.1 million up from $132.5 million a year earlier. Gross margin climbed to 40.7 per cent from 33.2 per cent a year earlier. The company also booked $36.8 million of other operating income in the quarter (versus $1.9 million in Q2 FY2024), further powering the turnaround. Operating expenses rose a modest 5.8 per cent year-over-year, and finance costs edged lower to $21.5 million from $23.3 million. Together, those shifts lifted operating profit to $63.3 million, from $11.0 million a year ago.
At the six-month mark, revenue grew 5.4 per cent b to $830.9 million while direct expenses fell 11.3 per cent to $463.4 million. That mix produced gross profit of $367.5 million (up from $265.9 million), pushing the gross margin to 44.2 per cent from 33.7 per cent The company recorded $37.5 million in other operating income for the half, a sharp swing from a negative $23.1 million in the comparable period last year. Operating profit reached $158.0 million versus a $7.2 million loss a year earlier, underscoring that the profit rebound is not just a single-quarter story.
Two levers stand out. First, cost of sales contracted far faster than revenue, reflecting either better procurement, pricing, or product mix – evident in the 7.6 percentage point lift in the quarterly gross margin and a 10.5 point expansion for the half-year. Second, overheads remained contained: total operating expenses rose only 5.8 per cent in Q2, well below the growth in gross profit. Net finance costs were also slightly better for the quarter amid lower loan principals, aiding the bottom line. CEO Hugh Graham had committed the company to this improvement, saying that cost of sales and overall efficiency would come in for special attention.
Investors have been marking up the shares. In recent sessions the stock traded around $1.38 on the JSE Junior Market, with the three-month move up roughly 84 per cent and six months up 53 per cent – a re-rating that mirrors the earnings recovery.
The company notes that the hurricane’s revenue impact was confined mostly to late October and November, while most of the quarter’s other income was earned in November and was unrelated to storm effects. The key questions for the second half of the year are sustainability of the higher gross margin, recurrence of other operating income, and continued discipline on operating costs, especially as financing costs remain material. Balance-sheet liquidity appears adequate with total assets of $1.73 billion from which it carved out capital of $1.15 billion from $990.8 million a year earlier.
Still, the reversal from loss to profit – both for the quarter and year-to-date – coupled with the share price advance and a normalised, positive price/earning, signals a company regaining its operating footing and market confidence despite weather-related disruption.
