May 13, 2021
Berger Paints Jamaica Limited (BRG) for the three months ended March 31, 2021 reported total revenues of $597.51 million, an 18% increase relative to $508.50 million reported for the comparable period in 2020.
Cost of sales for the period totalled $279.81 million, an increase of 8% relative to the $260.26 million booked in 2020. Of this:
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- There was $73.29 million booked for ‘Changes in inventories of finished goods and work in progress’ relative to $54.31 million for the first quarter of last year.
- Raw materials and consumables rose 12% to close at $353.11 million (2020: $314.57 million).
The Company reported other income of $14.47 million, up from the $254,000 reported last year.
The Company recorded a 11% growth in operating expenses to $323.78 million (2020: $290.49 million). Management noted that, “, this increase in operating expenses resulted mainly from additional deprecation from investments in plant & machinery and the substantial investments in our BOLDY BERGER campaign and brand relaunch.” Of total operating expenses:
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- Depreciation costs totaled $17.12 million (2020: $18.45 million).
- Manufacturing expenses totalled $14.59 million (2020: $18.51 million), a 21% decline year over year.
- Employee benefits expenses declined 7% to $131.71 million (2020: $141.78 million).
- Other operating expenses rose 44% to $160.36 million relative to the $111.75 million recorded in 2020.
Consequently, profit before tax for the period amounted to $8.39 million, an improvement compared with a loss of $41.98 million recorded for the comparable period in 2020.
There was taxation charge of $105,000 for the three months ended March 31, 2021 relative to no taxation charge for the corresponding period last year. Consequently, net profit for the three months ended March 31,2021 totalled $8.28 million when compared with a net loss of $41.98 million reported for the corresponding period in 2020.
Consequently, earnings per share for the three months ended March 31, 2021 amounted to $0.04 relative to a loss per share of $0.20 the same quarter last year. The trailing twelve months earnings per share amounted to $0.29. 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, 2021 at a price of $13.53 with a correspond P/E of 46.84 times.
- The Company highlighted, “despite these uncertain times, it was decided that we must continue to inspire and chart the future we wish to emerge into. As such, despite previously being placed on hold, we are excited to have launched our transformational BOLDLY BERGER campaign, offering a world-class and reinvigorating look and feel to the Berger brand, while strengthening our position as the market leader.”
Balance Sheet Highlights:
The Company, as at March 31, 2021 recorded total assets of $1.95 billion, a slight decrease of 2% when compared to $2 billion recorded last year. ‘Cash and Bank balances’ fell to $144.87 million (2020: $486.58 million). However, this was partially tempered by an increase in ‘Inventories’ to $787.65 million (2020: $587.85 million).
Total Stockholders’ equity as at March 31, 2021, closed at $1.16 billion, a 9% increase from $1.07 billion for the corresponding period last year. This resulted in a book value per share of $5.40 compared to the value of $4.98 as at March 31, 2020.
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