BRG reports first quarter net profit of $17.09 million

May 13, 2022

Berger Paints Jamaica Limited (BRG) for the three months ended March 31, 2022 reported total revenues of $719.01 million, a 20% increase relative to $597.51 million reported for the comparable period in 2021.

Cost of sales for the period totalled $396.72 million, an increase of 42% relative to the $279.81 million booked in 2021. Of this:

    • There was $58 million booked for ‘Changes in inventories of finished goods and work in progress’ relative to $73.29 million for the first quarter of last year.
    • Raw materials and consumables rose 29% to close at $454.72 million (2021: $353.11 million).

The Company reported other income of $3.98 million, down from the $14.47 million reported last year.

The Company recorded a 6% decrease in operating expenses to $303.57 million (2021: $323.78 million). Of total operating expenses:

    • Depreciation costs totaled $17.99 million (2021: $17.12 million).
    • Manufacturing expenses totalled $13.16 million (2021: $14.59 million), a 10% decline year over year.
    • Employee benefits expenses increase 18% to $155.52 million (2021: $131.71 million).
    • Other operating expenses decreased 27% to $116.90 million relative to the $160.36 million recorded in 2021.

Consequently, profit before tax for the period amounted to $22.71 million, relative to profit before tax of $8.39 million recorded for the comparable period in 2021.

There was taxation charge of $5.62 million for the three months ended March 31, 2022 relative to taxation charge of $105,000 for the corresponding period last year. Consequently, net profit for the three months ended March 31,2022 totalled $17.09 million when compared with a net profit of $8.28 million reported for the corresponding period in 2021.

Consequently, earnings per share for the three months ended March 31, 2022 amounted to $0.08 relative to earnings per share of $0.04 the same quarter last year. The trailing twelve months earnings per share amounted to $0.62. 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 May 12, 2022 at a price of $11.60 with a correspond P/E of 18.81 times.

The Company highlighted, “we are cognizant of the ongoing risk to the business due to future outbreaks and internal contagion. We remain committed to delivering on long term strategies and stating focused on serving the needs of all our customers.”

Balance Sheet Highlights:

The Company, as at March 31, 2022 recorded total assets of $2.40 billion, an increase of 10% when compared to $1.95 billion recorded last year. ‘Cash and Bank balances’ increased to $304.55 million (2021: $144.87 million and  ‘Inventories’ increased to $968.32 million (2021: $787.65 million).

Total Stockholders’ equity as at March 31, 2022, closed at $1.32 billion, a 14% increase from $1.16 billion for the corresponding period last year. This resulted in a book value per share of $6.14 compared to the value of $5.40 as at March 31, 2021.



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.