March 09, 2020

Berger Paints Jamaica Limited, for the year ended December 31, 2019 reported revenues of $2.53 billion relative to 2.71 billion in 2018, a 7% decrease year over year. As the for the fourth quarter revenues decreased by 10%, from $985.80 million in 2018 to $891.54 million in 2019.

The company’s total expenses totaled $2.48 billion down 1% relative to the $2.50 billion reported in 2018. Of total expenses:

o    Raw materials and consumables used declined 1% to close at $1.37 billion relative to $1.38 billion incurred for the 12 months ended December 2018.

o    Manufacturing expenses decreased 18% to close at $108.30 million (2018: $132.60 million).

o    Depreciation expense closed the year end at $48.94 million (2018: $40.81 million).

o    Employee benefits expense increased 5% to $558.38 million (2018: $530.39 million).

o    Other operating expenses amounted to $515.60 million (2018: $450.23 million).

o    Other income rose to $13.98 million versus $818,000 twelve months earlier.

Profit before taxes fell by 80% amounting to $41.40 million relative to the $212.16 million earned in the corresponding period in 2018. The fourth quarter reported a loss before taxes, declined by 89% and ended with a negative $8.86 million ( 2018: $149.16 million).

After taxation of $12.10 million (2018: $38.61 million), net profit for the period totaled $29.30 million, a decrease of 83% relative to the $173.55 million reported in 2018. While in the 2019 fourth quarter the net loss after tax closed at $10.90 million compared to net profit of $130.31 million in 2018.

Earnings per share for the year amounted to $0.14 (2018: $0.81), as for 2019 fourth quarter loss per share amounted to $0.05 compare to 2018 $0.61.  The stock price closed the trading period on March 6, 2019 at a price of $11.00.

Balance Sheet at a glance:

Total Assets increased by 20% or $392.34 million to close at $2.32 billion as at December 31, 2019 from $1.93 billion the year prior. The movement was due to an increase in ‘Cash and Bank Balances’ and ‘Inventories’ which closed at $584.70 million (2018: $353.80 million) and $638.70 million (2018: $471.99 million).

Equity attributable to stockholders of the company as at December 31, 2019 stood at $1.11 billion (2018: $1.14 billion) resulting in book value per share of $5.17 (2018: $5.32).

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