Date: March 8, 2019
Jamaica Broilers Group (JBG) for the nine months ended January 31, 2019 reported total revenues of $40.27 billion, a 13% increase relative to $35.68 billion reported in for the comparable period in 2018. Revenue for the third quarter amounted to $14.55 billion, a 15% increase compared to $12.66 billion booked for the corresponding quarter of 2018.
JBG noted, the following:
- “Jamaica Operations reported segment result of $2.5 billion, which was $476 million or 23% above last year’s segment result of $2.0 billion. This improvement was attributed to increased poultry sales and enhanced inventory management. Total revenue for our Jamaica Operations showed an increase of 6%.”
- “Total revenue for our US Operations increased by 28% over the prior year driven by increased sales of our main products – fertile eggs and baby chicks, as well as feed sales from the acquired feed mill. Our US Operations reported a segment result of $1.1 billion, which was a 16% increase from the prior year’s result of $973 million.”
- “Total revenue for our Haitian Operations increased by 9% over the prior year driven by increased sales of table eggs. The segment result amounted to $146 million, which is $6 million or 4% below last year’s segment result of $152 million. Effective October 2018, Jamaica Broilers Group Limited acquired an additional 4% stake in Haiti Broilers S.A., thereby increasing our holdings to 72%.”
- “The Other Caribbean Operations reported segment results of $1.5 billion an increase of $1.2 billion over the corresponding quarter of the previous year. The significant increase is mainly due to the net results of the JBGL Stockholders Nominee Limited, driven by the unrealised fair value gains (which are eliminated upon consolidation of the Group) of the shares held.”
Cost of sales for the period amounted to $30.46 billion, a 14% increase compared with the $26.73 billion recorded for the same period in 2018. This resulted in gross profit for the period of $9.80 (2018: $8.95 million), a 10% increase year over year. Gross profit for the quarter amounted to $3.59 billion relative to $3.32 billion in 2018.
The company reported other gains of $304.26 million, a 50% increase above last year’s corresponding period of $202.54 million.
Operating expenses of $7.89 billion were reported for the period, approximately 14% more than the $6.92 billion booked for the same period in 2018. Of total operating expenses; distribution costs totalled $1.42 billion (2018: $1.32 billion), while administration and other expenses totalled $6.48 billion (2018: $5.60 billion), a 16% increase year over year. Operating expense for the quarter closed at $2.76 billion, up from $2.34 billion reported for the third quarter ended January 31, 2018. The company noted, “These results also include the operating expenses of the new hatchery in Pennsylvania and the costs associated with the formation of the Shareholders’ Trust – these costs were not in last year’s comparative results”.
This resulted in operating profit for the period of $2.22 billion, a 1% decline when compared with the $2.23 billion recorded for the comparable period in 2018. Operating profit for the quarter totalled $988.30 million relative to 1.03 billion.
JBG reported finance income of $328.41 million compared to a finance loss of income of $43.24 million for the prior year.
Finance cost for the period totalled $728.59 million, a 53% increase relative to the $476.68 million recorded for the same period in 2018.
Profit before Tax for the period amounted to $1.82 billion, a 6% or $106.23 million increase relative to the $1.71 billion reported for the same period in 2018. Profit before tax for the quarter amounted to $858.09 million (2018: $810.45 million).
Taxation for the period increased by 35% to total $408.24 million relative to $301.64 million. Consequently, Net Profit for the nine months period remained flat year on year to total $1.41 billion relative to $1.41 billion reported for the corresponding period ended January 2018. For the quarter, the company reported net profit of $762.87 million, a 2% increase relative to the $749.07 million reported for the comparable quarter in 2018.
The company reported Net profit attributable to shareholders of $1.38 billion, a 1% increase compared with the $1.36 billion recorded a year earlier. Net profit attributable to shareholders for the quarter amounted to $754.56 million, an increase of 3% relative to the $730.00 million recorded in 2018.
Consequently, Earnings per share for the nine months ended January 31, 2108 amounted to $1.15 (2018: $1.14). The trailing twelve months earnings per share amounted to $1.65. The total number of shares used in the calculations amounted to 1,199,276,400 units. Earnings per share for the quarter amounted $0.63 relative to the $0.61 recorded for same quarter in 2018. Notably, JBG’s stock price closed the trading period on March 7, 2019 at a price of $33.78.
Balance Sheet Highlights:
As at January 31, 2019 the company recorded total assets of $33.32 billion, an increase of 7% when compared to $31.01 billion recorded last year. This was as a result of a 20% increase in ‘Property, plant and equipment’ to total $9.82 billion (2018: $8.19 billion). Receivables also increased by 21% to total $4.77 billion (2018: $3.95 billion).
Total Stockholders’ equity as at January 31, 2019 closed at $13.69 billion, an 8% increase from $12.62 billion for the corresponding period last year. This resulted in a book value per share of $11.41 compared to the value of $10.52 as January 31, 2018.
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