BRG reports 30.50% decline in nine months net profit

March 06,2018

Berger Paints Jamaica Limited (BRG) for the nine months ended December 30, 2017 reported total Revenues of $1.910 billion, a marginal decrease of 0.15% when compared with the $1.913 billion reported for the corresponding period in 2016. For the quarter, the company reported total revenue of $834.95 million, a 6.70% decrease relative to the $894.96 million reported in 2016. Revenue for the twelve months ended December 31, 2017 amounted to $2.36 billion (2016: $2.29 billion).

For the period under review, the company reported total operating expenses of $1.71 billion. Of total operating expenses;

  • ‘Raw materials and consumables used’ totalled $900.48 million
  • ‘Changes in inventories of finished goods and work in progress’ totalled $31.42 million
  • ‘Manufacturing expense’ totalled $96.33 million
  • ‘Depreciation’ totalled $19.40 million
  • ‘Employee benefits expense’ totalled $381.24 million
  • ‘Other operating expense’ totalled $285.00 million

Profit before Tax for the period amounted to $208.24 million, a 34.95% or $111.89 million decline relative to the $320.13 million reported for the comparable period in 2016. Profit before tax for the twelve months ended December 31, 2017 amounted to $253.79 million (2016: $308.48).

Taxation for the period declined by 51.39% to total $34.11 million. Consequently, Net Profit for the nine months period decreased 30.50% or $76.40 million to total $174.13 million when compared with the $250.53 million reported for the corresponding period in 2016. For the quarter, the company reported net profit of $96.79 million a 47.71% decrease relative to the $185.11 million reported for the comparable quarter in 2016. Net profit for the twelve months ended December 31, 2017 totaled $239.16 million (2016: $262.40 million).

Consequently, Earnings per share for the nine months ended December 31,2107amounted to $0.81 (2016: $1.17). The trailing twelve months earnings per share amounted to $1.12. The total number of shares used in the calculations amounted to 214,322,393 units. Earnings per share for the quarter amounted $0.45 relative to the $0.86 recorded for same quarter in 2016. Notably, BRG’s stock price closed the trading period on March 5, 2018 at a price of $18.72

The company noted, “51.01% of Berger Paints Jamaica Limited (Berger) was acquired by Ansa Coatings International Limited on July 24, 2017. As at 31st December 2017, the % ownership was 54.12%. As a result of the acquisition, Berger’s year-end was changed from March 31 to December 31, to coincide with that of its parent.”

Balance Sheet Highlights:

The company, as at December 31, 2017, recorded total assets of $1.68 billion, an increase of 12.76% when compared to $1.49 billion recorded last year. This was due to a 6.40% increase in Non-Current Assets which resulted from a surge in ‘Post-employment benefit assets’ to total $162.61 million (2016: $16.59 million).

Total Stockholders’ equity as at December 31, 2017, closed at $1.06 billion, a 20.63% increase from $876.67 million for the corresponding period last year. This resulted in a book value per share of $4.93 compared to the value of $4.09 as December 31, 2016.

 

Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.

 

 

 

 

 

2018-03-06T15:16:18+00:00