BRG reports nine months net loss of $20.37 million

November 17, 2020

For the nine months ended September 30, 2020:-

Berger Paints Jamaica Limited (BRG), for the nine months ended September 30, 2020, reported total revenues of $1.49 billion, a 9% decrease relative to $1.63 billion reported in for the comparable period in 2019. Total revenues for the quarter totalled $574.37 million, 8% more than the $534.20 million booked in 2019. According to BRG this was attributed to, “The deployment of creative revenue generation strategies, and focused channel management.”

No ‘Changes in inventories of finished goods and work in progress’ was recorded relative to $135.98 million reported in 2019.

Total expenses for the nine months ended September 30, 2020 declined 11% to $1.53 billion compared to $1.72 billion for the same period in 2019. Of this:

Raw materials and consumables used amounted to $705.53 million compared to $941.22 million reported in 2019.

Manufacturing expense fell 32% to $57.22 million (2019: $84.01 million), while depreciation climbed 58% to $44.97 million (2019: $28.50 million).

Employee benefits expense fell to $394.19 million relative to $404.23 million in 2019.

Other operating expense rose 25% to $326.79 million versus $261.76 million recorded in 2019.

BRG noted, “The decrease in operating expenses resulted from management’s deliberate measures at improving efficiencies throughout the operations, reducing risk factors and containing costs.”

The Company reported other income of $7.70 million versus the $540,000 reported last year.

The Company did not book financial cost for the period under review relative to $376,000 recorded the prior year.

Loss before tax for the period amounted to $26.63 million relative to the profit before tax of $50.25 million reported for the comparable period in 2019. However, profit before Tax for the quarter increased 524% year over year to $57.62 million (2019: $9.23 million).

BRG booked Tax credit for the period of $6.26 million (2019: tax charges of $10.05 million). Notwithstanding, the company recorded net loss of $20.37 million for the nine months period, a 151% decrease relative to the net profit of $40.20 million reported for the corresponding period in 2019. Net profit for the quarter totalled $42.87 million relative $7.39 million for the corresponding quarter in 2019.

BRG noted, “Management’s insistent focus on maintaining business continuity and a committed drive to deliver on our strategic agenda will ensure that BPJL endures through these challenging times and be powerfully positioned for the future.”

Consequently, Loss per share for the period ended September 30, 2020 amounted to $0.10 (2019: EPS $0.19) while earnings per share for the quarter amounted in $0.20 (2019: $0.03). The trailing twelve months loss per share amounted to $0.15. 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 November 16, 2020 at a price of $11.86.

Balance Sheet at a glance:

The company, as at September 30, 2020 recorded total assets of $1.82 billion, 1% decrease when compared to $1.85 billion recorded last year. This was due to a 30% decline in cash and bank balances which closed at $305.68 million (2019: $435.67 million) coupled with the 16% decline in Inventories which closed at $508.90 million (2019: $605.62 million).

Total Stockholders’ equity as at September 30, 2020, closed at $1.09 billion, a 2% decline from $1.11 billion for the corresponding period last year. This resulted in a book value per share of $5.08 compared to the value of $5.20 as at September 30, 2019.


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