JBG reports 102% increase in net profit attributable to shareholders

Date: September 5, 2018

Jamaica Broilers Group (JBG) reported total revenues of $12.16 billion, a 6% increase on the $11.49 billion reported in 2017. Total revenue was broken down as follows. Of total revenues:

  • The Jamaica Operations contributed $8.24 billion, a 5% increase compared to $7.87 billion for the same period of 2017.
  • US Operations recorded an increase of 7% to total $3.32 billion relative to $3.09 billion last year. According to the company, “Our US Operations reported a segment result of $300 million, which was a 6% decrease from the prior year’s result of $318 million. This decrease was primarily attributable to one-off staff cost elements and acquisition costs related to the recent feed mill purchase; these cost elements are not expected to recur. Total revenue for this segment increased by 8% over the prior year driven by increased sales of our main products – fertile eggs and baby chicks.”
  • Haiti Operating contributed $594.99 million, an increase of 13% when compared to $526.77 million. Management highlighted, “Haiti Operations has increased their market share of table eggs to 34%, compared to 30% of the market at the end of the first quarter last year. The segment result for the first quarter amounted to $60 million, which is $15 million or 32% above last year’s segment result of $45 million. Total revenue increased by 13%.”

Cost of Sales grew by 2% to $8.98 billion from $8.82 billion in 2017. As such, gross profit for the first quarter reflected an increase of 19% to close at $3.18 billion versus $2.67 billion booked for the corresponding period in 2017.

Other income climbed 179% from $68.94 million for the first quarter of 2017 to $192.56 million in 2017. Distribution costs declined 2% to close at $436.09 million relative to $443.78 million recorded for the prior year’s comparable period, while administration and other expenses grew by 22% to $2.27 billion (2017: $1.86 billion). According to the company, “distribution costs and administrative costs, reflect an increase of 17% over the previous year primarily due to salary increases and exchange movements”

Operating profit increased by 52%, totalling $664.70 million relative to $436.43 million last year.

JBG reported finance income of $300.06 million (2017: $10.44 million) an increase of 2774%, while finance costs increased by 115% to $323.65 million relative to $150.45million in 2017.

Profit before taxation increased for the period amounting to $641.11 million (2017: $296.42 million). Tax charges for the quarter totalled $227.73 million (2017: $83.84 million). As such, net profit amounted to amounted to $413.38 million (2017: $212.59 million).

Net profit attributable to shareholders amounted to $398.84 million relative to $197.69 million booking for the comparable period in 2017.

Total comprehensive income for the first quarter amounted to $712.74 million relative to $228.60 million.

Consequently, earnings per share totalled $0.33 relative to $0.16 booked for the first quarter of 2017. The trailing twelve months EPS amounted to $1.82. The total shares used in our calculation amounted to 1,199,276,400 units. Notably, JBG closed the trading period on September 5, 2018 at a price of $26.88.

Balance sheet at a glance:-

Total assets amounted to $32.42 billion as at July 31, 2018 relative to $27.70 billion a year prior. The increase in total assets was due mainly an increase in ‘Property, Plant and Equipment’ and ‘Biological assets’ which rose 17% and 32% respectively. ‘Property, Plant and Equipment’ and ‘Biological assets’ as at July 31, 2018 amounted to $8.44 billion (2017: $7.22 billion) and $5.74 billion (2017: $4.35 billion) respectively. ‘Cash and short term investments’ also contributed to the growth in the asset base with a 57% increase from $1.98 billion in 2017 to $3.11 billion.

Shareholders equity amounted to $13.32 billion (2017: $14.65 billion) with a book value per share of $11.06 (2016: $12.22).


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