Jamaica Broilers Group (JBG) for the nine months ended January 31, 2018 reported total revenues of $35.68 billion, an 11% increase relative to $32.12 billion reported in for the comparable period in 2017. Revenue for the third quarter amounted to $12.66 billion, an 8% increase compared to $11.69 billion booked for the corresponding quarter of 2017.
JBG noted, “Jamaica Operations reported a segment result of $2 billion, which was $382 million or 16% below last year’s normalized segment result of $2.4 billion. This decrease was mainly attributed to higher distribution costs as a result of a rebalancing of the inventory in the poultry segment, as well as some third-party storage issues that took place in the first quarter.”
Cost of sales for the period amounted to $26.73 billion, a 12% increase compared with the $23.84 billion recorded for the same period in 20167. This resulted in gross profit for the period of $8.95 billion (2017: $8.28 million), an 8% increase year over year. gross profit for the quarter amounted to $3.32 billion relative to $3.08 billion in 2016.
The company reported other gains of $202.54 million, a 13% above last year’s corresponding period of $179.08 million.
Operating expenses of $6.92 billion were reported for the period, approximately 10% more than the $6.32 booked for the same period in 2017. The company noted this increase was “due primarily to inflation and increased development costs”. Of total operating expenses; distribution costs totalled $1.32 billion (2017:$1.04 billion) while administration and other expenses totalled $5.60 billion (2016: $5.27 billion), a 6% increase year over year. Operating expense for the quarter closed at $2.34 billion, up from $2.20 billion reported for the third quarter ended January 31, 2017.
This resulted in operating profit for the period of $2.23 billion, a 4% or $86.10 million increase when compared with the $2.14 billion recorded for the comparable period in 2017. Operating profit for the quarter totalled $1.03 billion relative to $989.25 million.
JBG reported finance loss of $43.24 million compared to an income of $287.74 million for the prior year. The company noted, “This is primarily due to the appreciation of the Jamaican dollar against the United States dollar.”
Finance cost for the period totalled $476.68 million, a 3% increase relative to the $462.19 million recorded for the same period in 2017.
Profit before Tax for the period amounted to $1.71 billion, a 13% or $259.38 million decline relative to the $1.97 billion reported for the same period in 2016. Profit before tax for the quarter amounted to $810.45 million (2017: $858.09 million).
Taxation for the period declined by 23% to total $301.64 million relative to $390.56 million. Consequently, Net Profit for the nine months period decreased 11% or $170.46 million to total $1.41 billion when compared with the $1.58 billion reported for the corresponding period ended January 2017. For the quarter, the company reported net profit of $749.07 million, a 2% increase relative to the $736.80 million reported for the comparable quarter in 2017.
The company reported Net profit attributable to shareholders of $1.36 billion, a 12% decline compared with the $1.56 billion recorded a year earlier. Net profit attributable to shareholders for the quarter amounted to $730 million, an increase of 1% relative to the $721.84 million recorded in 2017.
Consequently, Earnings per share for the nine months ended January 31, 2108 amounted to $1.14 (2017: $1.30). The trailing twelve months earnings per share amounted to $1.70. The total number of shares used in the calculations amounted to 1,199,276,400 units. Earnings per share for the quarter amounted $0.61 relative to the $0.60 recorded for same quarter in 2017. Notably, JBG’s stock price closed the trading period on March 8, 2018 at a price of $18.51
Balance Sheet Highlights:
As at January 31, 2018 the company recorded total assets of $27.95 billion, an increase of 6% when compared to $26.35 billion recorded last year. This was due to a 6.40% increase in Non-Current Assets which resulted from an increase of $1.12 billion in ‘Property, plant and equipment’ to total $8.14 billion (2017: $7.02 billion).
Total Stockholders’ equity as at January 31, 2018 closed at $15.50 billion, a 13% increase from $13.66 billion for the corresponding period last year. This resulted in a book value per share of $12.92 compared to the value of $11.39 as January 31, 2018.
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