BRG reports 49% decline in three months net profit

Date: May 15, 2019 

Berger Paints Jamaica Limited (BRG) for the ended March 31, 2018 reported total Revenues of $498.07 million, a 2% decline relative to $506.10 million reported in for the comparable period in 2018.  The company noted this is attributable to “ an increase in fiscal management of receivables and tightening of trade credit terms.”

Cost of sales for the period totalled $261.14 million, 5% more than the $247.60  million booked in 2018. Of this:

    • ‘Changes in inventories of finished goods and work in progress’ net loss totalled $13.56 million relative to a net gain of $22.35 million for the first quarter of 2018.
    • Raw materials and consumables declined 8% to close at $247.58 million (2018: $269.95 million) “arising from supplier increases and the fluctuating value of the J$ during the period with swings from a decline of 7% in January to an appreciation of 1% by end of March”

The company reported other income of $171,000 a 23% increase from the $139,000 reported last year.

The company recorded an overall decline in expenses. Of total operating expenses:

    • Depreciation costs totalled $8.07 million (2018:$7.28 million)
    • Manufacturing expenses totalled $18.83 million (2018: $22.70 million), a 17% decline year over year.
    • Employee benefits expenses climbed 13% to $132.91 million (2017: $118.03 million)
    • Other operating expenses declined 28% to $71.65 million relative to the $99.41 million recorded in 2018.

This resulted in operating profit for the period of $5.65 million, a 50% decline when compared with the $11.22 million recorded for the comparable period in 2018.

The Company booked finance cost of $376,000 million relative to nil the prior year’s period.

As such, Profit before Tax for the period amounted to $5.28 million, a 53% decline relative to the $11.22 million reported for the comparable period in 2018.

BRG booked Taxation for the period of $1.32 million relative to $3.49 million booked for the corresponding period last year. Consequently, Net Profit for the three months period decreased 49% to total $3.96 million when compared with the $7.73 million reported for the corresponding period in 2018.

Consequently, Earnings per share for the three months ended March 31, 2019 amounted to $0.02 (2018: $0.04). The trailing twelve months earnings per share amounted to $0.79. 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 May 15, 2019 at a price of $20.00.

Balance Sheet Highlights:

The company, as at March 31, 2019 recorded total assets of $1.82 billion, an increase of 9% when compared to $1.67 billion recorded last year. This was due to increases in ‘Cash and Cash Equivalents’ to total $511.44 million (2018: $111.83 million).

Total Stockholders’ equity as at March 31, 2019, closed at $1.14 billion, an 8% increase from $1.06 billion for the corresponding period last year. This resulted in a book value per share of $5.34 compared to the value of $4.94 as March 31, 2018.


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