BRG reports 83% decline in year end net profit

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).



Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.