May 8, 2024
Berger Paints Jamaica Limited (BRG)
Unaudited financials for the first quarter ended March 31, 2024:
Berger Paints Jamaica Limited (BRG), for the first quarter of March 31, 2024, reported an 8% increase in turnover totaling $772.35 million compared to $717.53 million in the corresponding period last year.
The company’s effective cost management is evident in the decrease in cost of Goods Sold, which amounted to $329.88 million (2023: $407.07 million), representing a significant 19% decrease year over year. This has led to a substantial increase in gross income, which rose by 43% to $442.47 million compared to $310.47 million for the first quarter ended March 31, 2023, demonstrating the company’s profitability.
Raw materials and consumables used decreased by 40% to close at $286.39 million (2023: $476.23 million), while Employee benefits expense increased by 12% from $138.08 million in 2023 to $154.28 million for the quarter that ended March 31, 2024. As a result, Total Expenses for the first quarter amounted to $732.98 million, a 107% increase relative to the $354.33 million reported in 2023.
The company’s financial performance has significantly improved, as evidenced by the profit/Loss before Tax for the first quarter ended March 31, 2024, which amounted to $51.48 million. This represents a substantial 112% increase relative to a loss of $445.87 million reported in 2023, indicating the company’s successful turnaround from battling the pandemic and improved financial health.
Taxation for the first quarter ending March 31, 2024, had a 6% decrease to $3.19 million (2023: $3.40 million). Net Profit for the year-end amounted to $48.29 million, an 111% increase from the prior loss of $442.47 million reported in 2023.
Consequently, Earnings Per Share for the year-end amounted to $0.23 (2023: LPS: $2.06). The twelve-month trailing EPS was $1.27, and the average number of shares used in these calculations was 214,322,393.
Notably, BRG’s stock price closed the trading period on May 08, 2024, at $5.41.
Balance Sheet Highlights
The company’s assets totaled $2.40 billion (2023: $2.58 billion). The decrease in assets was mainly attributed to the decline in Inventory, which closed at $800.30 million (2023: $1.02 billion), and Trade and other receivables, which closed at $595.13 million (2023: $765.52 million).
Shareholder’s equity was $1.10 billion (2023: $1.19 billion), representing a book value per share of $5.12 (2023: $5.55).
Disclaimer:
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.