November 15, 2021
Berger Paints Jamaica Limited (BRG) for the six months ended September 30, 2021, reported total Revenues of $1.96 billion, a 31% increase relative to $1.49 billion reported in for the comparable period in 2020. Total revenues for the quarter totalled $695.59 million, 21% more than the $574.37 million booked in 2020.
Changes in inventories of finished goods and work in progress for the period under review ended at $279.50 million versus a reversal of $20.09 million booked twelve months prior.
The Company reported other income of $63.70 million over the $7.70 million reported last year.
BRG recorded a 49% increase in total operating expenses, which consisted of:
- Raw materials and consumables increased by 71% to close at $1.21 billion (2020: $685.43 million)
- Depreciation costs totalled $54.74 million (2020: $44.97 million)
- Manufacturing expenses totalled $37.76 million (2020: $57.22 million), a 34% contraction year over year.
- Employee benefits expenses rose by 7% to $422.04 million (2020: $394.19 million)
- Other operating expenses increased 63% to $533.61 million relative to the $326.80 million recorded in 2020.
Profit before tax for the period amounted to $46.90 million, relative to a loss before tax of $26.63 million reported for the comparable period in 2020.
BRG paid $9.28 million in taxes, relative to a tax credit of $6.26 million booked September 2020. Nonetheless, Net profit for the nine months period totalled $37.62 million, relative to a net loss of $20.37 million reported for the corresponding period in 2020. Net profit for the quarter totalled $27.53 million, down 36% from the $42.86 million for the corresponding quarter in 2020.
Consequently, earning per share for the period ended September 30, 2021, amounted to $0.18 (2020: LPS of $0.10) while earning per share for the quarter amounted to $0.13 (2020: $0.20). The trailing twelve months EPS amounted to $0.32. 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 12, 2021, at a price of $14.80 with a corresponding P/E ratio of 45.55 times.
According to BRG, “Despite the current socio-economic challenges, Berger Paints Jamaica Ltd. (BPJL) has continued to push forward with our transformational agenda and coupled with our BOLDLY BERGER relaunch, we have recorded encouraging numbers for the quarter.” Furthermore, “As the roll out of our exciting and modern branding and packaging continues across the region, our commitment to our valued customers, remains on offering world-class, premium products backed by industry-leading customer service and experience.”
Balance Sheet at a glance:
The Company, as of September 30, 2021, recorded total assets of $2.81 billion, a 54% increase when compared to $1.82 billion recorded last year. This was due to an increase in ‘Inventories’ which closed at $1.65 billion (2020: $508.90 million).
Total Stockholders’ equity as of September 30, 2021, closed at $1.18 billion, an 8% increase from $1.09 billion for the corresponding period last year. This resulted in a book value per share of $5.51 compared to the value of $5.08 last year.
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