BRG reports 70% decline in nine months net profit

Date: November 14, 2018

Berger Paints Jamaica Limited (BRG) for the nine months ended September 30, 2018 reported total revenues of $1.73 billion, a 13% increase relative to $1.52 billion reported for the comparable period in 2017. Total revenues for the quarter totalled $607.83 million, 2% less than the $620.98 million booked in 2017.

The company reported a 38% increase in ‘changes in inventories of finished goods and work in progress’ to $182.61 million from $49.58 million booked for the same period in 2017.

BRG booked other income of $967,000 a 76% decline from the $4.06 million reported last year.

The company recorded an overall uptick in expenses. The company noted this increase was, “stemmed from investment in additional storage space as well as some one-off 0077pnesesrelating to improvement to the Berger plant.”

  • Raw materials and consumables climbed 38% to close at $1.03 billion (2017: $746.24 million).
  • Depreciation costs totalled $23.73 million (2017: $20.46 million) .
  • Manufacturing expenses totalled $92.23 million (2017: $84.79 million), a 9% increase year over year.
  • Employee benefits expenses climbed 8% to $387.30 million (2017: $359.59 million).
  • Other operating expenses increased 40% to $314.16 million relative to the $225.19 million recorded in 2017.

Profit before tax for the period amounted to $63.00 million, also a 55% decline relative to the $141.44 million reported for the comparable period in 2017.

BRG booked taxation for the period of $19.77 million in contrast to a tax credit of $1.60 million in 2017’s corresponding period. Consequently, Net Profit for the nine months period decreased 70% to total $43.24 million when compared with the $143.04 million reported for the corresponding period in 2017. Net profit for the quarter totaled $8.97 million relative $53.92 million for the corresponding quarter in 2017.

Consequently, Earnings per share for the period ended September 30, 2018 amounted to $0.20 (2017: $0.67), while earnings per share for the quarter amounted in $0.04 (2017: $0.25).The trailing twelve months earnings per share amounted to $0.65. 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 November 14, 2018 at a price of $20.60

Balance Sheet Highlights:

The company, as at September 30, 2018 recorded total assets of $1.89 billion, an increase of 27% when compared to $1.49 billion recorded last year. This was due to an increase in ‘Inventories’ to $613.49 million (2017: $412.41 million), ‘Trade and other receivables’ which closed at $513.74 million (2017: $470.72 million). Other contributors to the increase in the total asset base were ‘Property, Plant and Equipment’ and ‘Cash and Cash balances’ which closed at $258.55 million (2017: $204.35 million) and $315.85 (2017: $224.08 million) respectively.

Total Stockholders’ equity as at September 30, 2018, closed at $1.03 billion, a 9% increase from $947.10 million for the corresponding period last year. This resulted in a book value per share of $4.82 compared to the value of $4.42 as September 30, 2018.

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