BRG reports 111% increase in six months net profit

August 19, 2022

Berger Paints Jamaica Limited (BRG)

Financials for the six months ended June 30, 2022:-

Berger Paints Jamaica Limited (BRG) for the six months ended June 30, 2022 reported total revenues of $1.39 billion, a 10% increase relative to $1.26 billion reported for the comparable period in 2021. For the quarter, revenues amounted to $673.09 million (2021: $665.73 million).

Raw materials and consumable used for the period totalled $842.28 million, an increase of 14% relative to the $737.20 million booked in 2021.

‘Changes in inventories of finished goods and work in progress’ closed the period at $84.41 million compared to $146.84 million in 2021.

The Company reported other income of $12.54  million, down from the $31.17 million reported last year.

Depreciation costs totalled $34.56 million (2021: $36.04 million).

Manufacturing expenses totalled $25.17 million (2021: $27.32 million), an 8% decline year over year.

Employee benefits expenses decreased 5% to $272.33 million (2021: $285.59 million).

Other operating expenses decreased 16% to $290.18 million relative to the $344.91 million recorded in 2021.

Consequently, profit before tax for the period amounted to $24.53 million, relative to profit before tax of $10.19 million recorded for the comparable period in 2021. Profit before tax for the quarter summed to $1.82 million (2021: $1.80 million).

There was a taxation charge of $3.23 million for the six months ended June 30, 2022 relative to a taxation charge of $105,000 for the corresponding period last year. Consequently, net profit for the six months ended June 30, 2022 totalled $21.30 million when compared with a net profit of $10.08 million reported for the corresponding period in 2021. While, for the quarter, net profit totalled $4.21 million (2021: $1.80 million).

Earnings per share for the six months ended June 30, 2022 amounted to $0.10 relative to earnings per share of $0.05 the same period last year. For the quarter, EPS amounted to $0.02 (2021: $0.01). The trailing twelve months earnings per share amounted to $0.63. 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 18, 2022 at a price of $11.48 with a correspond P/E of 18.28 times.

The Company highlighted, “Berger Paints Jamaica Ltd (BPJL) continues to drive our long-term strategies whilst maintaining focus on talent development, being customer-centric, community development and driving strong financial and operational performance. There is general recovery in the economy which augurs well for the outlook of the company and built on the strategic foundations now in place, management is poised and committed to delivering a strong H2 performance.”


Balance Sheet Highlights:

The Company, as at June 30, 2022 recorded total assets of $2.361 billion, a decrease of 0.1% when compared to $2.363 billion recorded last year. This decrease was attributable to an 8% decrease in ‘Inventories’ which fell from $1.14 billion in 2021 to $1.05 billion in 2022.

Total Stockholders’ equity as at June 30, 2022, closed at $1.32 billion, a 14% increase from $1.16 billion for the corresponding period last year. This resulted in a book value per share of $6.16 compared to the value of $5.41 as at June 30, 2021.



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