JBG reports 6% increase in three months net profit

August 27, 2020

Jamaica Broilers Group (JBG) for the three months ended August 1, 2020 reported total revenues of $12.58 billion, a 5% decrease on the $13.26 billion reported in 2019. Total revenue was broken down as follows. Of total revenues:

  •  The Jamaica Operations contributed $7.01 billion, a 16% decrease compared to $8.38 billion for the same period of 2019 due to, “the pandemic but the impact on the segment result was mitigated by the diversification of income streams and enhanced product portfolio management,” as per JBG.
  • US Operations recorded an increase of 18% to total $5.11 billion relative to $4.34 billion last year. According to the company, “Our US Operations reported a segment result of $316 million. External revenue increased by 31% over the period but was offset by the performance of lower sales of fertile hatching eggs. However, the sales of The Best Dressed Chicken line of products has been very well received and is driving us to increase production at a very aggressive pace. The depth of our investments in the US Poultry industry will certainly be of benefit in these times.”
  • Haiti Operating contributed $462.65 million, a decline of 13% when compared to $530.70 million due to “the current political and economic instability being experienced in Haiti,” according to JBG.

Cost of Sales fell by 3% to $9.63 billion from $9.94 billion in 2019. As such, gross profit for the first quarter reflected a decrease of 11% to close at $2.95 billion versus $3.32 billion booked for the corresponding period in 2019.

Other income increased 255% from $76.38 million for the first quarter of 2019 to $271.33 million in 2020. Distribution costs increased 5% to close at $467.21 million relative to $445.29 million recorded for the prior year’s comparable period, while administration and other expenses fell by 16% to $1.90 billion (2019: $2.28 billion).

Operating profit for the period thus increased by 25%, totalling $851.09 million relative to $679.35 million last year.

JBG reported no finance income for the period (2019: $36.46 million) while finance costs increased by 19% to $356.72 million relative to $299.39 million in 2019.

Profit before taxation increased for the period amounting to $494.38 million (2019: $416.42 million). Tax charges for the quarter totalled $111.73 million (2019: $55.41 million). As such, net profit amounted to amounted to $382.64 million (2019: $361.01 million). JBG reported that, “this increase in net profit was primarily as a result of the Best Dressed Chicken (US) acquisition and careful management of our operating expenditures.”

Total comprehensive income for the first quarter amounted to $628.77 million relative to $472.70 million. Net profit attributable to shareholders amounted to $414.06 million relative to $368.40 million booking for the comparable period in 2019.

Consequently, earnings per share totalled $0.35 relative to $0.31 booked for the first quarter of 2019. The trailing twelve months EPS amounted to $1.21. The total shares used in our calculation amounted to 1,199,276,400 units. Notably, JBG closed the trading period on August 27, 2020 at a price of $24.23.

Balance sheet at a glance:-

Total assets amounted to $44.03 billion as at August 1, 2020 relative to $34.86 billion a year prior. The increase in total assets was due mainly an increase in ‘Property, Plant and Equipment,’ ‘Inventories’ and ‘Biological assets’ which rose 29%, 32% and 35% respectively. ‘Property, Plant and Equipment,’ ‘Inventories’ and ‘Biological assets’ as at August 1, 2020 amounted to $13.05 billion (2019: $10.14 billion), $8.77 billion (2019: $6.67 billion) and $8.97 billion (2019: $6.65 billion), respectively.

Shareholders equity amounted to $16.56 billion (2019: $15.19 billion) with a book value per share of $13.81 (2019: $12.67).

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