December 7, 2023
Jamaica Broilers Group Limited (JBG) for the six months ended October 28, 2023, reported a 2% increase in Revenue totaling $46.77 billion compared to $45.84 billion in the corresponding period last year. Revenue for the second quarter had a 2% increase to close at $23.39 billion compared to $22.94 billion for the comparable quarter of 2022.
JBG highlighted, “Jamaica Operations reported a segment result of $3.7 billion which was $204 million or 6% above last year’s segment result. Total revenue for our Jamaica Operations showed an increase of 3% over the prior year six-month period. This increase was primarily driven by increased production, increased sale and export of poultry and implementation of cost containment efforts.”
Additionally, “Our US Operations reported a segment result of $2.2 billion which was $401 million, 22% above last year’s segment result. This increase was driven by increased volumes of poultry meat and eggs, as well as the implementation of cost management initiatives.”
Cost of Sales amounted to $35.29 billion (2022: $34.75 billion), this represents an increase of 2% year over year. Consequently, gross profit increased by 3% to $11.48 billion compared to $11.10 billion for the six months ended October 29, 2022. The company booked gross profit of $5.77 billion for the second quarter versus $5.75 billion reported for the similar quarter of 2022.
Other gains decreased by 2% to close at $259.67 million (2022: $265.08 million), while Distribution Costs increased by 5% from $1.44 billion in 2022 to $1.51 billion in the period under review. As a result, administration and other expenses for the six months amounted to $5.76 billion, a 5% increase relative to $5.48 billion reported in 2022.
Operating Profit for the six months ended October 28, 2023, amounted to $4.46 billion, a neglible increase relative to $4.45 billion reported in 2022. Operating Profit for the second quarter amounted to $2.24 billion (2022: $2.64 billion). Finance Costs totalled $1.37 billion, an 80% increase from the corresponding period last year. (2022: $756.49 million).
Profit before taxation for the six months amounted to $3.16 billion, a 15% decrease relative to $3.69 billion reported in 2022. Profit before taxation for the second quarter amounted to $1.52 billion (2022: $2.22 billion).
Taxation for the six months totalled $625.70 million (2022: $671.25 million). Net Profit from continuing operations for the six months amounted to $2.53 billion, a 16% decrease from the $3.02 billion reported in 2022. For the second quarter, Net Profit from continuing operations was $1.29 billion (2022: $1.88 billion).
Net profit attributable to shareholders for the six-month period was $2.53 billion (2022: $2.07 billion). Net profit attributable to shareholders for the second quarter was $1.29 billion (2022: $992.99 million).
Consequently, Earnings Per Share for the six months amounted to $2.11 (2022: EPS: $1.73), while Earnings Per Share for the quarter totaled $1.07 (2022: EPS: $0.83). The twelve-month trailing EPS was $4.09, and the number of shares used in these calculations was 1,199,276,400.
Notably, JBG’s stock price closed the trading period on December 06, 2023, at a price of $33.31 with a corresponding P/E ratio of 8.14x.
Balance Sheet Highlights
The company’s assets totalled $78.43 billion (2022: $66.31 billion). The increase resulted from a 45% increase in ‘Inventories’ closing at $21.10 billion (2022: $18.04 billion).
Shareholder’s equity was $27.53 billion (2022: $23.10 billion), representing a book value per share of $22.96 (2022: $19.26).
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