March 3, 2022

Berger Paints Jamaica Limited (BRG) for the twelve months ended December 31, 2021, reported Total Revenue of $3.11 billion, a 31% increase relative to the $2.37 billion reported in 2020. Total revenue for the quarter totalled $1.15 billion, also 31% more than the $876.91 million booked in 2020.

Changes in inventories of finished goods and work in progress for the period under review rose to $231.79 million from the loss of $127.04 million reported the prior year.

The Company reported other income of $38.74 million versus the $20.03 million reported last year. Berger recorded a 25% increase in total expenses, of which:

Raw Materials and Consumables increased by 72% to close at $1.88 billion (2020: $1.09 million), while Other operating expenses increased 25% to $659.50 million relative to the $527.99 million recorded in 2020.

• Employee benefits expense rose 7% within the year to $549.88 million (2020: $511.61 million). Depreciation inched up 12% to $73.67 million relative to $65.71 million recorded in 2020.
• Manufacturing Expense for the year amounted to $57.50 million (2020: $55.75 million), up 3% year over year.

Profit before Tax of $159.69 million was reported for the period (2020: $11.79 million). Profit before tax for the fourth quarter was $112.79 million, versus $38.42 million in 2020. Following taxation of $36.35 million (2020: $148,000) Net profit totaled $123.34 million, relative to a profit of $11.65 million reported in 2020. BRG’s net profit for the quarter closed at $85.72 million compared to $32.02 million in 2020.

Earnings per Share amounted to $0.58 (2020: EPS of $0.05). The EPS for the fourth quarter was $0.40 compared to $0.15 for the same quarter in 2020. The total number of shares used in the calculations amounted to 214,322,393 units. Notably, BPJL’s stock price closed the trading period on March 3, 2022, at a price of $12.00 with a corresponding P/E ratio of 20.85 times.

According to BPJL, “Supply Chain and logistic challenges continued as global supplies remained unpredictable because of the ongoing COVID-19 pandemic and other macro-economic factors. Raw Material prices incurred significant and frequent increases and reliability of supply was and continues to be under constant threat. BPJL Management made prudent decisions to manage costs and focused on driving operational efficiency levels to absorb these increases.”

Balance Sheet at a glance:

 The Company, as of December 31, 2021, recorded total assets of $2.30 billion, 26% increase when compared to $1.83 billion recorded last year. This was due to an increase in ‘Inventories’ which closed at $740.27 million (2020: $445.71 million).

Total Stockholders’ Equity as of December 31, 2021, closed at $1.30 billion, an 8% increase from $1.15 billion for the corresponding period last year. This resulted in a book value per share of $6.06 compared to the value of $5.36 last year.

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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.