May 17, 2022
Jamaica Producers Group Limited (JP), for the three months ended March 31, 2022, booked a 26% increase in revenue to total $6.91 billion compared to the $5.48 billion reported in 2021.
The Food and Drink Division reported a 24% increase in revenue to total $4.12 billion relative to $3.34 billion reported in 2021. The Group stated that, “JP’s F&D Division is the largest contributor to the revenues of the Group. The Division earned First Quarter profits before finance cost and taxation of $80 million on revenues of $4.1 billion. This represents an increase of 24% compared to revenues of $3.3 billion in the same period last year. The F&D Division now comprises our portfolio of subsidiaries that are engaged in farming, food processing, distribution and retailing of food and drink. The Division has production facilities in Europe and the Caribbean (Jamaica and the Dominican Republic) and operates a distribution centre in the United States. Our JP Farms business continues to lead in banana and pineapple production in Jamaica.”
Revenue from Logistics and Infrastructure increased by 30% year over year to total $2.79 billion (2021: $2.15 billion). The Group highlighted that this was, “The Division continues to benefit from a series of initiatives to develop Kingston Wharves as a leading regional multipurpose and multi-user terminal, and Newport West as a warehousing and logistics hub. During the quarter, Kingston Wharves benefited from growing volumes of containerized cargo and automotive shipments to Jamaica and the region. The quarterly improvements also reflect our strategy to build a diversified Caribbean logistics platform, through business development initiatives and through acquisitions.”
The Corporate Services division earned $32.02 million relative to $29.04 million in 2021, a 10% increase.
Cost of sales closed the three months ended March 31, 2022 at $4.99 billion, a 26% increase when compared to $3.95 billion reported for the comparable period in 2021. Despite this increase, gross profit increased to close at $1.92 billion, a 25% uptick from $1.53 billion documented in 2021.
Other income for the three months end March 31, 2022 amounted to $107.42 million relative to other income of $197.51 million for the three months ended March 31, 2021.
JP’s selling, administration, and other operating expenses closed at $1.17 billion, this compares to $964.92 million booked a year earlier. JP also recorded an operating profit of $853.27 million for the first quarter ended March 31, 2022 (2021: $763.37 million) representing a 12% increase. While, the share of profit in joint venture amounted to $146.28 relative to a loss of $16,000 reported in the previous corresponding period.
Finance cost was reported at $56.63 million for the three months ended March 31, 2022, relative to the $63.84 million reported in 2021. As such, profit before taxation amounted to $942.92 million for the period (2021: $699.51 million).
The Group incurred tax charges of $132.15 million (2021: $129.39 million). Consequently, net profit for the period rose by 42% to close at $810.77 million (2021: $570.13 million). Notably, net profit attributable to shareholders, for the quarter ended March 31, 2022, totalled $406.09 million; a 58% increase from the $256.50 million reported in the prior year’s corresponding period. Total comprehensive income amounted to $717.94 million (2021: $516.98 million).
Earnings per share for the period amounted to $0.36 (2021: $0.23), while the twelve-month trailing earnings per share amounted to $1.78. The number of shares utilized in the computations amounted to 1,122,144,036 units. JP stock last traded on May 16, 2022 at $22.84 with a corresponding P/E of 12.85 times.
JP noted that, “Investment in food grade packaging lines, information technology systems, efficiency and hygiene, and health and safety are all expected to bolster the F&D Division in the months ahead. Our acquisition strategy will continue to see us identifying other logistics services that support trade with the Caribbean, as well as food and drink businesses in markets that present new growth opportunities for the Group”
Balance Sheet Highlights:
As at March 31, 2022, the Group’s asset base totalled $45.26 billion, 9% more than its value of $41.44 billion a year ago. This increase was due largely to increases in ‘Securities purchased under resale agreements’ which closed at $9.88 billion (2021: $7.82 billion).
The Group ended the period with equity attributable to shareholders in the amount of $18.27 billion relative to $16.32 billion in 2021. The company now has a book value per share of $16.28 versus $14.54 in 2021.
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