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).
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.
