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
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.