BRG reports 60% decline in year end net profit

March 2, 2021

Berger Paints Jamaica Limited, for the year ended December 31, 2020 reported revenues of $2.37 billion relative to $2.53 billion in 2019, a 6% decrease year over year. As the for the fourth quarter, revenues decreased by 2%, from $891.54 million in 2019 to $876.91 million in 2020.

The Company’s total expenses totaled $2.36 billion down 5% relative to the $2.48 billion reported in 2019. Of total expenses:

  • Raw materials and consumables used declined 20% to close at $1.09 billion relative to $1.37 billion incurred for the twelve months ended December 2019.
  • Manufacturing expenses decreased 49% to close at $55.74 million (2019: $108.30 million).
  • Depreciation expense rose 34% to close the year end at $65.71 million (2019: $48.94 million).
  • Employee benefits expense fell by 8% to close at $511.61 million (2019: $558.38 million).
  • Other operating expenses amounted to $527.99 million (2019: $515.60 million).

Other income rose to $20.03 million versus $13.98 million twelve months earlier. While for the quarter other income fell by 8% to close at $12.33 million (2019: $13.44 million).

Consequently, profit before taxes fell by 72% amounting to $11.79 million relative to the $41.40 million earned in 2019. BRG’s fourth quarter net profit amounted to $38.42 million relative to the loss before taxes of 8.86 million booked in 2019.

After taxation of $148,000 (2019: $12.10 million), net profit for the period totaled $11.65 million, a decrease of 60% relative to the $29.30 million reported in 2019. While in the 2020 fourth quarter the net profit after tax closed at $32.02 million compared to net loss of $10.90 million in 2019.

Earnings per share for the year amounted to $0.05 (2019: $0.14). As for the fourth quarter, earnings per share amounted to $0.15 compare to 2019 loss per share of $0.05.  The stock price closed the trading period on March 1, 2021 at a price of $14.04 with a corresponding P/E ratio of 258.40 times.

The company noted, “ The actual economic events and conditions in the future may be materially different from those estimates by the company at the reporting date. No matters have arisen since the end of the financial year which have significantly affected or may significantly affect the operations of the company. The company will continue to closely monitor the situation in order to plan its response, if necessary.”

Balance Sheet at a glance:

Total Assets decreased by 21% or $495.42 million to close at $1.83 billion as at December 31, 2020 from $2.32 billion the year prior. The movement was due to decreases in ‘Cash and Bank Balances’ and ‘Inventories’ which closed at $210.80 million (2019: $584.70 million) and $445.71 million (2019: $638.70 million). This was tempered by a 14% increase in ‘Property, plant and equipment’ which closed at $286.81 million (2019: $251.17 million).

Equity attributable to stockholders of the company as at December 31, 2020 stood at $1.15 billion (2019: $1.11 billion) resulting in book value per share of $5.36 (2019: $5.17).



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