BRG reports 7% decline in six months net profit

Date: August 15, 2019

Berger Paints Jamaica Limited (BRG) for the six months ended June 30, 2019 reported total Revenues of $1.10 billion, a 2% decrease relative to $1.12 billion reported in for the comparable period in 2018. Total revenues for the quarter totalled $601.54 million, 2% less than the $615.27 million booked in 2018.

The company reported a 38% decrease in ‘changes in inventories of finished goods and work in progress’ to $24.56 million from $39.34 million booked for the same period in 2018.

The company reported other income of $358,000 a 22% decline from the $460,000 million reported last year.

The company recorded a minute decrease in expenses. Total operating expenses consist of:

    • Raw materials and consumables increased 1% to close at $591.37 million (2018: $585.65 million)
    • Depreciation costs totalled $17.32 million (2018:$16.80 million)
    • Manufacturing expenses totalled $49.49 million (2018: $59.78 million), a 17% decline year over year.
    • Employee benefits expenses climbed 12% to $280.81 million (2018: $251.79 million)
    • Other operating expenses decreased 27% to $144.15 million relative to the $198.26 million recorded in 2018.

The Company also booked financial cost of $376,000 relative to nil the prior year.

Profit before Tax for the period amounted to $41.02 million, a 16% or $7.87 million decline relative to the $48.89 million reported for the comparable period in 2018.

BRG booked Taxation for the period of $9.10 million (2018: $14.62 million). Consequently, Net Profit for the six months period decreased 7% or $2.35 million to total $31.92 million when compared with the $34.27 million reported for the corresponding period in 2018. Net profit for the quarter totaled $27.96 million relative $26.53 million for the corresponding quarter in 2018.

Consequently, Earnings per share for the period ended June 30, 2019 amounted to $0.15 (2018: $0.16) while earnings per share for the quarter amounted in $0.13 (2018: $0.12).The trailing twelve months earnings per share amounted to $0.80. 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 14, 2019 at a price of $19.06

Balance Sheet Highlights:

The company, as at June 30, 2019 recorded total assets of $1.75 billion, 1% increase when compared to $1.74 billion recorded last year. This was due to an increase in cash and bank balances which closed at $474.89 million (2018: $156.04 million). ‘Property, Plant and Equipment’ and ‘Inventories’ closed at $232.30 million (2018: $254.87 million) and $447.40 million (2018: $478.53 million) respectively.

Total Stockholders’ equity as at June 30, 2019, closed at $1.11 billion, an 8% increase from $1.02 million for the corresponding period last year. This resulted in a book value per share of $5.16 compared to the value of $4.78 as June 30, 2018.

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