Date: August 14, 2018 

Berger Paints Jamaica Limited (BRG) for the three months ended June 30, 2018 reported total Revenues of $1.12 billion, a 24% increase relative to $903.09 million reported in for the comparable period in 2017. Total revenues for the quarter totalled $615.27 million, 35% more than the $454.55 million booked in 2017.

The company reported a 29% increase in ‘changes in inventories of finished goods and work in progress’ to 39.34 million from $30.40 million booked for the same period in 2017.

The company reported other income of $460,000 an 87% decline from the $3.55 million reported last year.

The company recorded an overall uptick in expenses. The company noted this increase was, “due primarily to increased spend in advertising, selling and distribution.” Of total operating expenses:

• Raw materials and consumables climbed 29% to close at $585.65 million (2017: $426.85 million)
• Depreciation costs totalled $16.80 million (2017:$14.10 million)
• Manufacturing expenses totalled $59.78 million (2017: $59.99 million), a 0.3% decline year over year.
• Employee benefits expenses climbed 8% to $251.79 million (2017: $233.72 million)
• Other operating expenses increased 58% to $198.26 million relative to the $125.60 million recorded in 2017.

This resulted in operating profit for the period of $48.89 million, a 36% or $27.90 million decline when compared with the $76.79 million recorded for the comparable period in 2017.

Profit before Tax for the period amounted to $48.89 million, also a 36% or $27.90 million decline relative to the $76.79 million reported for the comparable period in 2017.”

BRG booked Taxation for the period of $14.62 million in contrast to a tax credit of $12.33 million in 2017’s corresponding period. Consequently, Net Profit for the six months period decreased 62% or $54.85 million to total $34.27 million when compared with the $89.12 million reported for the corresponding period in 2017. Net profit for the quarter totaled $26.53 million relative $23.42 million for the corresponding quarter in 2017.

Consequently, Earnings per share for the period ended June 30, 2018 amounted to $0.16 (2017: $0.42) while earnings per share for the quarter amounted in $0.12 (201: $0.11).The trailing twelve months earnings per share amounted to $0.88. The total number of shares used in the calculations amounted to 214,322,393 units. Notably, BRG’s stock price closed the trading period on August 14, 2018 at a price of $21.14

Balance Sheet Highlights:

The company, as at June 30, 2018 recorded total assets of $1.74 billion, an increase of 18% when compared to $1.48 billion recorded last year. This was due to an increase in trade and other receivables which closed at $666.39 million (2017: $347.01 million). Other contributors to the increase in the total asset base were ‘Property, Plant and Equipment’ and ‘Inventories’ which closed at $254.87 million (2017: $209.79 million) and $478.53 (2017: $444.10 million) respectively.

Total Stockholders’ equity as at June 30, 2018, closed at $1.02 billion, an 2% increase from $1.00 million for the corresponding period last year. This resulted in a book value per share of $4.78 compared to the value of $4.67 as June 30, 2017.

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.