August 21, 2020

Berger Paints Jamaica Limited (BRG) for the six months ended June 30, 2020 reported total Revenues of $920 million, a 16% decrease relative to $1.10 billion reported in for the comparable period in 2019. Total revenues for the quarter totalled $411.50 million, 32% less than the $601.54 million booked in 2019.

No ‘changes in inventories of finished goods and work in progress’ were booked for the period under review relative to $24.56 million booked for the same period in 2019.

The Company reported other income of $466,000, 30% greater than the $358,000 reported last year.

The Company recorded a 5% decrease in total operating expenses. Total operating expenses consist of:

• Raw materials and consumables decreased 25% to close at $441.48 million (2019: $591.37 million)
• Depreciation costs totalled $25.02 million (2019: $17.32 million)
• Manufacturing expenses totalled $51.09 million (2019: $49.49 million), a 3% increase year over year.
• Employee benefits expenses declined 4% to $268.71 million (2019: $280.81 million)
• Other operating expenses increased 52% to $218.41 million relative to the $144.15 million recorded in 2019.

No financial cost was booked for the period under review (2019: $376,000).

Loss before tax for the period amounted to $84.25 million, relative to a profit before tax of $41.02 million reported for the comparable period in 2019.

BRG booked a taxation credit for the period of $21 million, relative to a tax charge of $9.10 million booked June 2019. Consequently, Net Loss for the six months period total $63.25 million, relative to a profit of $31.92 million reported for the corresponding period in 2019. Net loss for the quarter totaled $21.26 million relative to a profit of $27.96 million for the corresponding quarter in 2019.

Consequently, loss per share for the period ended June 30, 2020 amounted to $0.30 (2019: EPS $0.15) while loss per share for the quarter amounted to $0.10 (2019: EPS $0.13). The trailing twelve months loss per share amounted to $0.31. 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 August 20, 2020 at a price of $10.55.

Balance Sheet Highlights:

The Company, as at June 30, 2020 recorded total assets of $1.70 billion, 3% decrease when compared to $1.75 billion recorded last year. This was due to a decrease in ‘Cash and bank balances’ which closed at $180.67 million (2019: $474.89 million).

Total Stockholders’ equity as at June 30, 2020, closed at $1.05 billion, a 6% decrease from $1.11 billion for the corresponding period last year. This resulted in a book value per share of $4.88 compared to the value of $5.16 as June 30, 2019

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