BRG reports 99% decline in year-end net profit

March 2, 2023

Berger Paints Jamaica Limited, for the year ended December 31, 2022 reported revenues of $3.30 billion relative to $3.11 billion in 2021, a 6% increase year over year. As the for the fourth quarter, revenues decreased by 3%, from $1.15 billion in 2021 to $1.11 billion in 2022.

The Company’s total expenses totaled $3.30 billion up 12% relative to the $2.95 billion reported in 2021. Of total expenses:

Raw materials and consumables used rose 3% to close at $1.93 billion relative to $1.88 billion incurred for the twelve months ended December 2021.

Manufacturing expenses decreased 5% to close at $54.78 million (2021: $57.50 million).

Depreciation expense rose 23% to close the year end at $90.58 million (2021: $73.67 million).

Employee benefits expense fell by 4% to close at $527.06 million (2021: $549.88 million).

Other operating expenses amounted to $728.83 million (2021: $659.50 million).

Consequently, profit before taxes fell by 100% amounting to $36,000 relative to the $159.69 million earned in 2021. BRG’s fourth quarter loss amounted to $25.57 million relative to the profit before taxes of $112.79 million booked in 2021.

After taxation credit of $666,000 (taxation charge 2021: $36.35 million), net profit for the period totaled $702,000, a decrease of 99% relative to the $123.34 million reported in 2021. While in the 2022 fourth quarter the net loss closed at $20.10 million compared to net profit of $85.72 million in 2021.

Earnings per share for the year amounted to $0.003 (2021: $0.58). As for the fourth quarter, loss per share amounted to $0.09 compared to 2021 earnings per share of $0.40.  The stock price traded on March 1, 2023 at a price of $8.27.

Balance Sheet at a glance:

Total Assets increased by 8% or $177.55 million to close at $2.48 billion as at December 31, 2022 from $2.30 billion the year prior. The movement was due to increases in ‘Trade and Other Receivables’ and ‘Income tax recoverable’ which closed at $808.99 million (2021: $644.01 million) and $67.30 million (2021: $18.76 million). This was tempered by a 62% decrease in ‘Post-employment benefit assets’ which closed at $81.11 million (2021: $212.13 million).

Equity attributable to stockholders of the company as at December 31, 2022 stood at $1.23 billion (2021: $1.30 billion) resulting in book value per share of $5.72 (2021: $6.06).



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