July 29, 2021

Berger Paints Jamaica Limited (BRG) for the six months ended June 30, 2021 reported total Revenues of $1.26 billion, a 37% increase relative to $920 million reported in for the comparable period in 2020. Total revenues for the quarter totalled $665.73 million, 62% more than the $411.50 million booked in 2020.

Changes in inventories of finished goods and work in progress for the period under review ended at $146.84 million relative to cost of $31.87 million booked for the same period in 2020.

The Company reported other income of $31.17 million over the $466,000 reported last year.

The Company recorded a 25% increase in total operating expenses. Total operating expenses consist of:

• Raw materials and consumables increased 80% to close at $737.20 million (2020: $409.61 million)
• Depreciation costs totalled $36.04 million (2020: $25.02 million)
• Manufacturing expenses totalled $27.32 million (2020: $51.09 million), a 47% contraction year over year.
• Employee benefits expenses rose by 6% to $285.59 million (2020: $268.71 million)
• Other operating expenses increased 58% to $344.91 million relative to the $218.41 million recorded in 2020.

No financial cost was booked for the period under review (2020: nil).

Profit before tax for the period amounted to $10.19 million, relative to a loss before tax of $84.25 million reported for the comparable period in 2020.

BRG booked a taxation charge for the period of $105,000, relative to a tax credit of $21 million booked June 2020. Consequently, Net profit for the six months period total $10.08 million, relative to a loss of $63.25 million reported for the corresponding period in 2020. Net profit for the quarter totaled $1.80 million relative to a loss of $21.26 million for the corresponding quarter in 2020.

Consequently, profit per share for the period ended June 30, 2021 amounted to $0.05 (2020: LPS of $0.30) while profit per share for the quarter amounted to $0.01 (2020: LPS of $0.10). The trailing twelve months EPS amounted to $0.40. 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 July 29, 2021 at a price of $13.74 with a corresponding P/E ratio of 34.66 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 at June 30, 2021 recorded total assets of $2.36 billion, 39% increase when compared to $1.70 billion recorded last year. This was due to a increase in ‘Inventories’ which closed at $1.14 billion (2020: $584.13 million).

Total Stockholders’ equity as at June 30, 2021, closed at $1.16 billion, an 11% increase from $1.05 billion for the corresponding period last year. This resulted in a book value per share of $5.41 compared to the value of $4.88 last year.

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