On October 09, 2017, Jamaica Broilers Group Limited (JBG) advised the public of its acquisition of a second hatchery in the United States. The hatchery acquired was previously operating as Bell & Evans Hatchery in Big Valley, Pennsylvania. The Group has indicated the new facility will be renamed International Poultry Breeders Hatcheries Inc. the acquisition which was concluded on October 04th, 2017 is expected to increase the Group’s hatching capacity by 40%.
Jamaica Broiler Group is a pioneer in the production and distribution of poultry products, animal feeds and agricultural items. Today, it is a fully integrated poultry operation and has diversified into feed milling and cattle rearing, along with the development and marketing of other value–added products for both local consumption and export. In 2017 the Group reported a 15% in revenue which translated to a net profit of $2.67 billion (2016: $1.73 billion). For the three months ended July 2017, JBG continued to strong growth in revenues which yielded revenues of $11.49 billion, 15% higher compared to corresponding period in 2016 or $10.02 billion. However increased costs such as cost of sales, administration and other expenses, and distribution costs led to a 27% fall operating profit. For the first quarter of 2017, the Group recorded net profit of $212.59 million, a slump of 47% relative to $401.27 million.
The acquisition expands the company’s grasp in the United State and will, “enable the group to access a larger company base, reduce any bio-security risk factors faced by its customers and lower delivery mileage,” the Company noted.
