JBG reports 12% decline in profits attributable to shareholders for the year end

Date: June 29, 2018

JBG reported total Revenues of $48.28 billion for the year ended April 30, 2018, a 9% increase on the $44.44 billion reported in 2017. The Jamaica Operations contributed $33.99 billion which represents approximately 70% of total revenues increasing by 6% relative to $31.96 billion in 2017. US Operations (approximately 25% of total revenue) contributed $12.04 billion increasing 11% relative to $10.86 billion for the comparable period, and Other Caribbean Operations (approximately 5% of total revenue) contributed $2.24 billion compared to $1.63 billion reported in 2017.

Cost of Sales for the period increased by $2.82 billion or 9% to $35.42 billion from $32.59 billion in 2015. Consequently, Gross Profit increased to $12.86 billion or 9% relative to $11.85 billion reported in 2017.

Distribution costs increased 22% to $1.92 billion for the period compared to $1.58 billion in the corresponding period last year, while administration and other expenses grew by 5% to $7.76 billion (2017: $7.37 billion).

The Company reported other income of $197.85 million for the period relative to $328.35 million reported in 2017, a 40% decline year on year.

Operating Profit increased by 5%, totalling $3.38 billion for the year end relative to $3.23 billion last year.

JBG reported Finance income of $474,000 (2017: $379.38 million) while finance costs climbed by 10% to $714.90 million relative to $647.24 million in 2017.

Profit before Taxation declined by 10% for the year end amounting to $2.67 billion (2017: $2.96 billion). Following taxation for the period of $641.26 million (2017: $700.61 million), net profit declined 11% to a total of $2.02 billion (2017: $2.26 million).

Net Profits attributable to shareholders amounted to $1.96 billion, 12% lower than the $2.23 billion reported in 2017. Net Profits attributable to shareholders for the quarter amounted to $597.92 million, 12% less than the $676.36 million reported in 2017.

Earnings per share (EPS) for year ended totalled $1.64 (2017: $1.86). The total number of shares employed in our calculations amounted to 1,199,276,400 units. Notably, JBG’s stock price closed the trading period on June 29, 2018, at a price of $23.50.

Balance sheet at a glance:-

Total assets amounted to $31.01 billion as at April 30, 2018 relative to $27.46 billion a year prior. This 13% increase in assets was as a result of an increase in ‘Property, Plant and Equipment’ and ‘Cash and short term investments’ to $8.19 billion (2017: $7.06 billion) and $3.12 billion (2017: $2.00 billion) respectively.

Shareholder’s Equity declined by $1.82 billion totalling $12.62 billion (2017: $14.44 billion) with a book value per share of $10.52 (2017: $12.04).


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