JBG reports 8% decline in three months net profit attributable to shareholders

Date: September 6, 2019

Jamaica Broilers Group (JBG) for the three months ended July 31,2019 reported total revenues of $13.26 billion, a 9% increase on the $12.16 billion reported in 2018. Total revenue was broken down as follows. Of total revenues:

    • The Jamaica Operations contributed $8.38 billion, a 2% increase compared to $8.24 billion for the same period of 2018.
    • US Operations recorded an increase of 31% to total $4.34 billion relative to $3.32 billion last year. According to the company, “Our US Operations reported a segment result of $333 million, which was an 11% increase over the prior year’s result of $300 million. This increase was primarily attributable to earnings from the feed mill, which was acquired after the first quarter in the previous year. Total revenue for this segment increased by 29% over the prior year driven by sales of feed.”
    • Haiti Operating contributed $530.70 million, a decline of 11% when compared to $594.99 million.

Cost of Sales grew by 11% to $9.94 billion from $8.98 billion in 2018. As such, gross profit for the first quarter reflected an increase of 5% to close at $3.32 billion versus $3.18 billion booked for the corresponding period in 2018.

Other income fell 60% from $192.56 million for the first quarter of 2018 to $76.38 million in 2018. Distribution costs increased 2% to close at $445.29 million relative to $436.09 million recorded for the prior year’s comparable period, while administration and other expenses grew marginally by 0.3% to $2.28 billion (2018: $2.27 billion).

Operating profit for the period thus increased by 2%, totalling $679.35 million relative to $664.70 million last year.

JBG reported finance income of $36.46 million (2018: $300.06 million) a decline of 88% “from reduced foreign exchange gains and reduction in interest income from the WIP loan, which was sold during this first quarter”, while finance costs declined by 7% to $299.39 million relative to $323.65 million in 2018.

Profit before taxation increased for the period amounting to $416.42 million (2018: $641.11 million). Tax charges for the quarter totalled $55.41 million (2018: $227.73 million). As such, net profit amounted to amounted to $361.01 million (2018: $413.38 million).

Total comprehensive income for the first quarter amounted to $361.01 million relative to $712.75 million.
Net profit attributable to shareholders amounted to $368.40 million relative to $398.84 million booking for the comparable period in 2018.

Consequently, earnings per share totalled $0.31 relative to $0.33 booked for the first quarter of 2018. The trailing twelve months EPS amounted to $1.95. The total shares used in our calculation amounted to 1,199,276,400 units. Notably, JBG closed the trading period on September 5, 2019 at a price of $33.39.

Balance sheet at a glance:-

Total assets amounted to $34.86 billion as at July 31, 2019 relative to $32.42 billion a year prior. The increase in total assets was due mainly an increase in ‘Property, Plant and Equipment’ and ‘Biological assets’ which rose 20% and 16% respectively. ‘Property, Plant and Equipment’ and ‘Biological assets’ as at July 31, 2019 amounted to $10.14 billion (2018: $8.44 billion) and $6.65 billion (2018: $5.74 billion) respectively. ‘Long receivables’ however tempered this growth recoding nil for 2019 relative to $1.41 billion the prior year.

Shareholders equity amounted to $15.19 billion (2018: $13.32 billion) with a book value per share of $12.67 (2018: $11.10).

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.

 

 

 

2019-09-06T14:11:31+00:00