March 4, 2021
For the nine months ended January 31 ,2021, Jamaica Broilers Group (JBG) reported total revenues of $41.32 billion, a 2% increase on the $40.58 billion reported in 2020. Revenue for the third quarter closed at $14.77 billion (2020: $14.31 billion). Total revenue for the nine months is broken down as follows. Of total revenues:
- The Jamaica Operations contributed $25.04 billion (2020: $26.14 billion).
- US Operations recorded revenue of $14.53 billion (2020: $13.06 billion), “driven by increased poultry and feed sales. The Best Dressed Chicken line of products continue to surpass expectations and has been well received in the market.”
- Haiti Operating increased year over year to $1.74 billion (2020: 1.38 billion). “resulting from increased foreign exchange gains mainly from the significant currency revaluation in our Haiti Operations.
Cost of Sales grew by 1% to $31.03 billion from $30.63 billion in 2020. As such, gross profit for the nine months reflected an increase of 1% to close at $10.29 billion versus $9.94 billion booked for the corresponding period in 2020. Gross profit for the quarter amounted to $3.84 billion relative to $3.45 billion for the corresponding quarter in 2020.
Other income rose 147% from $183.72 million in 2020 to $453.48 million in 2021. Distribution costs decreased by 6% to close at $1.70 billion relative to $1.80 billion recorded for the prior year’s comparable period, while administration and other expenses fell marginally by 1% to $6.07 billion (2020: $6.12 billion).
Operating profit for the period increased by 35%, totalling $2.97 billion relative to $2.20 billion for the nine months ended January 2020.
JBG reported no finance income for the period (2020: $36.46 million).
Profit before taxation for the period rose to $2.46 billion (2020: $1.48 billion). Profit before tax for the quarter closed at $940.36 million in contrast to $657.26 million reported twelve months prior. Tax charges for the nine months totalled $598.05 million (2020: $343.23 million). As such, net profit amounted to amounted to $1.86 billion, a 64% increase compared to the $1.14 billion booked for the same period in 2020. Net profit for the quarter amounted to $757.70 million versus $470.71 million in 2020.
Net profit attributable to shareholders amounted to $1.80 billion relative to $1.19 billion booked for the comparable period in 2020. Net profit attributable to shareholders for the third quarter closed at $761.96 million (2020: $499.96 million).
Total comprehensive income for the period amounted to $2.51 billion relative to $1.49 billion recorded in 2020. For the quarter, total comprehensive income closed at $736.10 million (2020: $637.41 million).
Consequently, earnings per share totalled $0.64 relative to $0.42 booked for the third quarter of 2020, while for the nine months ended January 2021, the EPS amounted to $1.50 (2020: $0.99). The trailing earnings per share amounted to $1.68. The total shares used in our calculation amounted to 1,199,276,400 units. Notably, JBG closed the trading period on March 04 ,2021 at a price of $28.95 with a corresponding P/E ratio of 17.27 times.
JBG noted, “The implementation of the Group’s diversification strategy has yielded positive results, including the strengthening of our various markets as economies continue to open. We are steadfastly praying for the well-being of all our stakeholders and remain committed to ensuring a continuous supply of our quality products to our customers.”
Balance sheet at a glance:-
Total assets amounted to $47.08 billion as at January 31, 2021 relative to $39.92 billion a year prior. The increase in total assets was due mainly an increase in ‘Biological Assets’ and ‘Inventories’ which rose 32% and 39% respectively. ‘Biological Assets’ and ‘Inventories’ as at January 31 2021 amounted to $9.68 billion (2020: $7.34 billion) and $11.53 billion (2020: $8.30 billion) respectively.
Shareholders equity as at January 31, 2021 amounted to $17.88 billion (2020: $16.06 billion), with a book value per share of $14.91 (2020: $13.39).
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