JBG reports 21% decrease in six months net profit

December 14, 2021

JBG reported Total Revenues of $35.83 billion for the six months ended October 31, 2021, a 35% increase on the $26.54 billion reported in 2020. Revenue for the quarter rose 30% to $18.22 billion versus $13.96 billion reported for the same quarter of 2020. Of total revenues:

o   The Jamaica Operations contributed $20.44 billion, relative to $15.56 billion in 2020.

o   US Operations contributed $14.64 billion relative to the $9.94 billion in 2020

o   Haiti Operations contributed $745.67 million compared to $1.05 billion reported in 2020. 

Cost of Sales for the six months period increased by 42% to $28.48 billion from $20.09 billion in 2020. Despite their increased cost of sales, Gross Profit increased to $7.35 billion, up 14% relative to $6.45 billion reported in 2020. Quarterly costs of sales followed the same trend, rising 38% compared to 2020’s figure – gross profit for the quarter rose 7% to close at $3.76 billion (2020: $3.51 billion). 

Distribution costs increased to $1.22 billion for the period compared to $1.10 billion for the corresponding period last year, while administration and other expenses grew by 21% to $4.68 billion (2020: $3.88 billion).  

The Company reported other income of $254.38 million for the period relative to $228.47 million reported in 2020, up 11% year on year. 

Operating Profit increased totalling $1.705 billion for the six-month period relative to $1.701 billion last year. Operating Profit for the quarter amounted to $980.05 million, up 15% from the $850.06 million reported for the corresponding quarter of 2020. 

JBG reported Finance Income of $17.32 million for the period under review (2020: nil), finance costs rose to $600.50 million relative to $179.88 million in 2020. Management stated this resulted, “from increased foreign exchange gains mainly from the significant currency revaluation in our Haiti Operations.” 

Profit before Taxation fell 26% to $1.12 billion (2020: $1.52 billion). Taxes payable for the period of $250.45 million (2020: $415.39 million). Net profit went down 21% to a total of $871.50 billion (2020: $1.11 billion). Net Profit for the quarter contracted by 18% to $596.02 million (2020: $723.24 million). 

Net Profits attributable to shareholders amounted to $882.14 billion, 15% lower than the $1.03 billion reported in 2020. Net Profits attributable to shareholders for the quarter amounted to $591.81 million, 4% less than the $619.67 million reported in 2020.

Total comprehensive income for the six months amounted to $736.93 million relative to $1.78 billion in 2020. Total comprehensive income for the quarter amounted to $504.64 million relative to $1.15 billion booked for the comparable period in 2020.  

Earnings per share (EPS) for period totalled $0.74 (2020: $0.86). The earnings per share for the quarter amounted to $0.49 relative to $0.52 in 2020. The trailing twelve months EPS amounted to $1.82. 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 December 14, 2021, at a price of $29.73 with a corresponding P/E of 16.12 times

Balance sheet at a glance:- 

Total assets amounted to $53.85 billion as at October 31, 2021 relative to $44.85 billion a year prior. This 20% increase in assets was a result of an increase in ‘Inventories ’and ‘Biological assets’ to $12.47 billion (2020: $8.53 billion) and $11.91 billion (2020: $9.25 billion), respectively. 


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.