JBG reports 41% decline in year end net profit attributable to shareholders

July 14, 2020

Jamaica Broilers Group (JBG) reported total Revenues of $55.75 billion for the year ended May 2, 2020, a 1% increase on the $55.75 billion reported in 2019. The Jamaica Operations contributed $34.76 billion which represents approximately 62% of total revenues decreasing by 3% relative to $35.86 billion in 2019. US Operations (approximately 34% of total revenue) contributed $18.92 billion increasing 13% relative to $16.80 billion for the comparable period, and Other Caribbean Operations (approximately 4% of total revenue) contributed $2.07 billion compared to $2.40 billion reported in 2019. However, revenue for the fourth quarter increased by 3% to $14.60 billion (2019: $14.23 billion) as at May 2, 2020.

Cost of Sales for the period increased by 1% to $41.14 billion from $40.82 billion in 2019. Consequently, Gross Profit increased to $14.60 billion, 3% higher relative to $14.23 billion reported in 2019. While, gross profit for the quarter amounted to $4.67 billion relative to $4.43 billion booked as at May 2, 2020.

Distribution costs decreased 6% to $1.97 billion for the period compared to $2.10 billion in the corresponding period last year, while administration and other expenses grew by 10% to $9.84 billion (2019: $8.96 billion).
The Company reported other income of $366.53 million for the period relative to $585.25 million reported in 2019, a 37% decrease year on year.

Operating Profit decreased by 17%, totalling $3.00 billion for the year end relative to $3.63 billion last year. As for the fourth quarter, operating profit closed at $798.46 million relative to $1.42 billion booked in 2019.

JBG reported Finance income of $36.46 million (2019: $366.82 million) while finance costs climbed by 20% to $1.18 billion relative to $988.59 million in 2019.

Profit before Taxation decreased by 38% for the year end amounting to $1.85 billion (2019: $3.01 billion). Following taxation for the period of $493.27 million (2019: $639.21 million), net profits decreased 43% to a total of $1.36 billion (2019: $2.37 million). As for the quarter, net profit amounted to $222.68 million relative to $966.59 million booked at end of May 2, 2020.

Net Profits attributable to shareholders amounted to $1.40 billion, 41% lower than the $2.37 billion reported in 2019. Net Profits attributable to shareholders for the quarter amounted to $214.48 million, 78% less than the $981.69 million reported in 2019.

Earnings per share (EPS) for year ended totalled $1.17 (2019: $1.97). 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 July 14, 2020, at a price of $26.01.

Balance sheet at a glance:-

Total assets amounted to $44.23 billion as at May 2, 2020 relative to $35.81 billion a year prior. This 24% increase in assets was as a result of ‘Inventories’, ‘Property, Plant and Equipment’, ‘Biological assets’ and ‘Cash and Short-term Investment’ to a total of $9.48 billion (2019: $6.68 billion), $12.45 billion (2019: $10.11 billion), $9.11 billion (2019: $6.82 billion) and $5.87 billion (2019: $3.73 billion) respectively.

Shareholder’s Equity increased by $1.13 billion totalling $15.96 billion (2019: $14.84 billion) with a book value per share of $13.31 (2019: $12.27).

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