Paramount Trading Returns to Profit on Strong Construction Growth

Paramount Trading Limited has posted a strong turnaround in its first-quarter results for the financial year ending August 2025, reversing losses recorded in the prior year. The improvement was driven primarily by robust performance in its Construction segment and a reduction in operating expenses, positioning the company for sustained profitability.

Key Details

For the first quarter ending August 2025, Paramount Trading Limited, one of Jamaica’s leading importers and distributors of chemicals, lubricants, and construction materials, recorded profit before tax of J$73.3 million. This marks a significant turnaround from a loss of J$37.9 million during the same period in 2024.

The company’s performance was underpinned by a 140% increase in revenue from its Construction segment, reflecting a surge in demand for building materials across Jamaica’s expanding infrastructure and real estate markets. Additionally, the Technical Grade and Bleach segments recorded growth of 12% and 1%, respectively.

Overall, gross revenue rose 14.4% year-over-year to J$445.2 million, while gross profit climbed 57.7% to J$210.4 million. Earnings per share (EPS) improved to J$0.036, compared to a loss per share of J$0.025 in the prior year.

At the same time, the company’s book value increased to J$1.73 billion, up from J$1.68 billion, reflecting stronger balance sheet health.

Operating expenses fell to J$116.3 million, an 8.1% reduction compared to the same period last year. This was achieved through tighter cost controls and improved operational efficiency.

However, finance costs rose to J$22.1 million from J$19.7 million, following the final disbursement of J$188 million from the company’s corporate bond in August 2024.

Background

Founded and headquartered at 39 Waltham Park Road, Kingston 13, Paramount Trading Limited has long been a key supplier of industrial chemicals, construction materials, and lubricants across Jamaica.

In recent years, the company has diversified its portfolio to better serve the island’s growing construction and manufacturing sectors. The strategic focus has been on expanding its presence in the construction market while maintaining strong supply partnerships in industrial and technical-grade products.

After facing pandemic-related challenges and cost pressures in previous financial years, Paramount has steadily worked to regain profitability. The latest quarterly results signal that these recovery efforts are yielding positive outcomes.

Quotes

While no direct quotes were published with the company’s release, the management indicated its intention to sustain growth momentum.

“The Board of Directors and management team remain steadfast in ensuring that Paramount continues its growth trajectory,” the company stated, reaffirming its commitment to operational efficiency and long-term value creation.

“We are exploring new opportunities to expand our revenue base in line with our strategic objectives while maintaining disciplined cost management,” the statement added.

Analysis

Paramount’s strong rebound in the first quarter underscores the resilience of Jamaica’s construction and industrial supply sectors. The 140% surge in Construction segment revenue is a clear indicator of heightened activity in the building industry, likely supported by public infrastructure projects and private real estate developments.

The company’s ability to reduce operating expenses while increasing gross profit suggests that efficiency measures introduced in recent periods are taking effect.

Although finance costs have risen modestly due to the final bond disbursement, the investment positions enable Paramount to pursue additional growth and diversification initiatives.

If the company maintains its focus on operational discipline and strategic expansion, it could deliver continued earnings improvement through fiscal 2026.

Our Opinion

Paramount Trading’s latest results show a solid recovery built on disciplined cost management and targeted growth in high-performing segments. The Construction division’s sharp rise demonstrates the company’s ability to capitalise on Jamaica’s ongoing development momentum.

With rising demand for building materials and infrastructure inputs, Paramount is well-placed to sustain growth if it continues to balance innovation, market responsiveness, and prudent financial management.

The coming quarters will reveal whether this turnaround can translate into long-term profitability and shareholder value creation.