March 10, 2023
For the nine months ended January 31 ,2023, Jamaica Broilers Group (JBG) reported total revenues of $68.51 billion, a 27% increase on the $54.02 billion reported in 2022. For the quarter, revenues closed at $22.67 billion (2022: $18.94 billion). Total revenue for the nine months is broken down as follows. Of total revenues:
- The Jamaica Operations contributed $43.82 billion (2022: $32.33 billion). The upward movement was due to “increased production and sale of poultry, as well as increased sale of baby chicks to our small farmers.”
- US Operations recorded revenue of $28.89 billion (2022: $25.00 billion), this increase according to management “was primarily driven by the increased production and sales in The Best Dressed Chicken line of products.”
Cost of Sales grew by 23% to $51.92 billion from $42.34 billion in 2022. As such, gross profit for the nine months reflected an increase of 42% to close at $16.59 billion versus $11.69 billion booked for the corresponding period in 2022.
Other income fell 55% from $846.58 million in 2022 to $384.09 million in 2023. Distribution costs increased by 17% to close at $2.17 billion relative to $1.86 billion recorded for the prior year’s comparable period, while administration and other expenses rose by 11% to $7.99 billion (2022: $7.22 billion).
Operating profit for the period increased by 97%, totaling $6.82 billion relative to $3.46 billion for the nine months ended January 2022. For the quarter, operating profit closed at $2.37 billion (2022: $1.74 billion).
JBG reported $10.13 million for finance income for the period (2022: $12.67 million).
Profit before taxation for the period rose to $5.55 billion (2022: $2.66 billion). Tax charges for the nine months totalled $1.04 billion (2022: $547.43 million).
As such, net profit amounted to $3.39 billion, a 66% increase compared to the $2.04 billion booked for the same period in 2022. While, for the quarter, net profit amounted to $1.48 billion (2022: $1.17 billion).
Net profit attributable to shareholders amounted to $3.56 billion relative to $2.05 billion booked for the comparable period in 2022. As for the quarter, net profit attributable to shareholders amounted to $1.48 billion (2022: $1.17 billion).
Total comprehensive income for the period amounted to $3.88 billion relative to $2.08 billion recorded in 2022.
Consequently, earnings per share for the nine months ended January 2023 amounted to $2.96 (2022: $1.71). The trailing earnings per share amounted to $3.87. The total shares used in our calculation amounted to 1,199,276,400 units. Notably, JBG last traded on March 9, 2023 at a price of $38.50 with a corresponding P/E ratio of 9.96 times.
Balance sheet at a glance:-
Total assets amounted to $70.46 billion as at January 31, 2023 relative to $55.46 billion a year prior. The increase in total assets was due mainly an increase in ‘Biological Assets’ and ‘Property, Plant and Equipment’ which rose 39% and 34% respectively. ‘Biological Assets’ and ‘Property, Plant and Equipment’ as at January 31 2023 amounted to $17.70 billion (2022: $12.75 billion) and $18.61 billion (2022: $13.94 billion) respectively.
Shareholders equity as at January 31, 2023 amounted to $24.53 billion (2022: $20.66 billion), with a book value per share of $20.46 (2022: $17.23).
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