July 09, 2021

Jamaica Broilers Group (JBG) reported total revenues of $56.95 billion for the year ended May 2, 2021, a 2% increase on the $55.75 billion reported in 2020.

The Jamaica Operations contributed $33.83 billion which represents approximately 60% of total revenues decreasing by 3% relative to $34.76 billion in 2020. US Operations (approximately 36% of total revenue) contributed $20.75 billion increasing 10% relative to $18.92 billion for the comparable period, and Haiti Operations (approximately 4% of total revenue) contributed $2.37 billion compared to $2.07 billion reported in 2020. JBG’s revenue for the fourth quarter increased by 3% to $15.63 billion (2020: $15.17 billion) as at May 2, 2021.

Cost of Sales for the period increased by 3% to $42.33 billion from $41.14 billion in 2020. Consequently, Gross Profit increased to $14.62 billion, marginally higher relative to $14.60 billion reported in 2020. While, gross profit for the quarter amounted to $4.33 billion relative to $4.66 billion booked in the prior comparable quarter.

Distribution costs increased 3% to $2.04 billion for the period compared to $1.97 billion in the corresponding period last year, while administration and other expenses declined by 4% to $9.43 billion (2020: $9.84 billion).

The Company reported other income of $847.83 million for the period relative to $366.53 million reported in 2020, a 131% increase year on year. The movement was mainly attributed to an  insurance claim of $236.27 million (2020: nil) and other income of $343.48 million relative to $150.75 million for the prior year. Net impairment change on trade receivables amounted to $63.18 million versus a net impairment loss of $161.71 million in 2020.

Operating profit increased by 35%, totalling $4.06 billion for the year end relative to $3.00 billion last year. As for the fourth quarter, operating profit closed at $1.09 billion relative to $798.46 million booked in 2020.

JBG reported no finance income for the year (2020: $36.46 million), while finance costs declined by 27% to $858.94 billion relative to $1.18 billion in 2020.

Profit before taxation increased by 73% for the year end amounting to $3.21 billion (2020: $1.85 billion). Following taxation for the period of $806.76 million (2020: $493.27 million), net profit increased 76% to a total of $2.40 billion (2020: $1.36 billion). As for the quarter, net profit amounted to $534.79 million relative to $222.68 million booked in the prior corresponding quarter.

Net profit attributable to shareholders amounted to $2.34 billion, 67% higher than the $1.40 billion reported in 2020. Net profit attributable to shareholders for the quarter amounted to $539.44 million, 140% more than the $214.48 million reported in 2020.

Total comprehensive income for the year end closed at $3.69 billion (2020: $1.61 billion).

Earnings per share (EPS) for year-end totaled $1.95 (2020: $1.17). For the quarter, EPS amounted to $0.45 (2020: $0.18). 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 09, 2021, at a price of $35.98 with a corresponding P/E of 18.48 times.

Balance sheet at a glance:-

Total assets amounted to $51.11 billion as at April 30, 2021 relative to $44.23 billion a year prior. This 16% increase in assets was as a result of ‘Inventories’ and ‘Biological assets’ which closed at $12.91 billion (2020: $9.48 billion) and $11.43 billion (2020: $9.11 billion), respectively.

Shareholders’ equity increased by $2.83 billion totalling $18.72 billion (2020: $15.89 billion) with a book value per share of $15.61 (2020: $13.25).

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