December 10, 2020
JBG reported Total Revenues of $26.54 billion for the six months ended October 31, 2020, a 1% increase on the $26.27 billion reported in 2019. Revenue for the quarter rose 7% to $13.96 billion versus $13.01 billion reported for the same quarter of 2019. Of total revenues:
- The Jamaica Operations, which accounted for approximately 59% of total revenues, contributed $15.56 billion, a decline of 8% relative to $16.85 billion in 2019. Management noted, “The COVID-19 pandemic has adversely impacted our Jamaica Operations revenue as we have seen a decline of 8% from the prior year. However, the Jamaica Operations was able to record a commendable 25% improvement over the prior year by improving efficiencies and the continued enhancing of our customer relationships.”
- US Operations (approximately 37% of total revenues) contributed $9.94 billion, increasing 18% relative to $8.43 billion for the prior year’s comparable period. According to JBG the movement was, “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 Operations (approximately 4% of total revenue) contributed $1.05 billion compared to $989.02 million reported in 2019.
Cost of Sales for the six months period increased by 2% to $20.09 billion from $19.77 billion in 2019. Consequently, Gross Profit increased to $6.45 billion, down 1% relative to $6.49 billion reported in 2019. After a 6% increase in cost of sales for the quarter, gross profit for the three months rose 11% to close at $3.51 billion (2019: $3.17 billion).
Distribution costsdecreased to $1.10 billion for the period compared to $1.11 billionfor the corresponding period last year, while administration and other expenses fell by 7% to $3.88 billion (2019: $4.18billion).
The Company reported other income of $228.47 million for the period relative to $102.53 million reported in 2019, up 123% year on year.
Operating Profit increased by 30%, totalling $1.70 billion for the six-month period relative to $1.31 billion last year. Operating Profit for the quarter amounted to $850.06 million, up 36% from the $625.74 million reported for the corresponding quarter of 2019.
JBG reported no Finance Income for the period under review (2019: $36.46 million), while finance costs fell by 65% to $179.88 million relative to $518.15 million in 2019. Management stated this resulted, “from increased foreign exchange gains mainly from the significant currency revaluation in our Haiti Operations.”
Profit before Taxation rose 85% to $1.52 billion (2019: $823.40 million). Following taxation for the period of $415.39 million (2019: $156.68 million), Net profit went up 66% to a total of $1.11 billion (2019: $666.72 million). Net Profit for the quarter expanded by 137% to $723.24 million (2019: $305.71 million).
Net Profits attributable to shareholders amounted to $1.03 billion, 51% higher than the $685.63 million reported in 2019. Net Profits attributable to shareholders for the quarter amounted to $619.67 million, 95% more than the $317.23 million reported in 2019.
Total comprehensive income for the six months amounted to $1.78 billion relative to $852.74 million. Total comprehensive income for the quarter amounted to $1.15 billion relative to $380.03 million booking for the comparable period in 2019.
Earnings per share (EPS) for period totalled $0.86 (2019: $0.57). The earnings per share for the quarter amounted to $0.52 relative to $0.26 in 2019. The twelve months trailing EPS totalled $1.46. 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 9, 2020, at a price of $28.42 with a corresponding P/E of 19.50 times.
Balance sheet at a glance:-
Total assets amounted to $44.85 billion as at October 31, 2020 relative to $37.78 billion a year prior. This 19% increase in assets was as a result of an increase in ‘Property, Plant and Equipment’ and ‘Biological assets’ to $13.84 billion (2019: $11.42 billion) and $9.25 billion (2019: $7.10 billion), respectively. Additionally, ‘Cash and short term investments’ contributed to the increase closing at $4.91 billion (2019: $2.90 billion).
Shareholder’s Equity increased by $1.76 billion totalling $17.15 billion (2019: $15.39 billion) with a book value per share of $14.30 (2019: $12.83).
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.