JBG reports 9% increase in six months net profit attributable to shareholders

Date: December 06, 2019

JBG reported Total Revenues of $26.27 billion for the six months ended October 31, 2019, a 2% increase on the $25.71 billion reported in 2018. Revenue for the quarter fell 4% to $13.01 billion versus $13.55 billion reported for the same quarter of 2018. Of total revenues:

The Jamaica Operations, which accounted for approximately 64% of total revenues, contributed $16.85 billion, a decline of 2% relative to $17.16 billion in 2018. Management noted, “This improvement was attributed to increased poultry sales and enhanced inventory management.”

US Operations (approximately 32% of total revenues) contributed $8.43 billion, increasing 14% relative to $7.38 billion for the prior year’s comparable period. According to JBG the movement was, “driven by increased sales of our main products – fertile eggs and baby chicks, as well as, feed sales.”

Haiti Operations (approximately 4% of total revenue) contributed $989.02 million compared to $1.17 billion reported in 2018. JBG noted, “the current decline in performance is as a direct result of the political and economic instability being experienced in Haiti.”

Cost of Sales for the six months period increased marginally by 1% to $19.77 billion from $19.50 billion in 2018. Consequently, Gross Profit increased to $6.49 billion, up 4% relative to $6.22 billion reported in 2018. After a 6% decline in Cost of sales for the quarter, Gross Profit for the three months rose 4% to close at $3.17 billion (2018: $3.04 billion).

Distribution costs decreased 5% to $874.97 million for the period compared to $917.89 million for the corresponding period last year, while administration and other expenses grew by 5% to $4.41 billion (2018: $4.21 billion). The movements in Distribution and Administrative costs year on year was, “due primarily to exchange movements, salary increases and increased staff complement.”

The Company reported other income of $102.53 million for the period relative to $142.17 million reported in 2018, down 28% year on year.

Operating Profit increased by 6%, totalling $1.31 billion for the six month period relative to $1.23 billion last year. Operating Profit for the quarter amounted to $625.74 million, up 11% from the $562.55 million reported for the corresponding quarter of 2018.

JBG reported Finance Income of $36.46 million (2018: $201.48 million), while finance costs climbed by 10% to $518.15 million relative to $471.45 million in 2018. Management stated, “the movement resulted from reduced foreign exchange gains and reduction in interest income from the WIP loan, which was sold during the first quarter of this financial year.”

Profit before Taxation decreased 14% to $823.40 million (2018: $957.28 million). Following taxation for the period of $156.68 million (2018: $313.02 million), Net profit went up 3% to a total of $666.72 million (2018: $644.26 million). Net Profit for the quarter expanded by 32% to $305.71 million (2018: $230.89 million).

Net Profits attributable to shareholders amounted to $685.63 million, 9% higher than the $629.32 million reported in 2018. Net Profits attributable to shareholders for the quarter amounted to $317.23 million, 38% more than the $230.48 million reported in 2018.

Earnings per share (EPS) for period totalled $0.57 (2018: $0.52). The earnings per share for the quarter amounted to $0.26 relative to $0.19. The twelve months trailing EPS totalled $2.02. 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 5, 2019, at a price of $37.91.

Balance sheet at a glance:-

Total assets amounted to $37.78 billion as at October 31, 2019 relative to $33.15 billion a year prior. This 14% increase in assets was as a result of an increase in ‘Property, Plant and Equipment’ and ‘Inventories’ to $11.42 billion (2018: $9.18 billion) and $8.10 billion (2018: $6.33 billion), respectively. Additionally, ‘Biological assets’ and ‘Receivables’ contributed to the increase closing at $7.10 billion (2018: $5.81 billion) and $4.86 billion (2018: $4.54 billion), respectively.

Shareholder’s Equity increased by $2.52 billion totalling $15.39 billion (2018: $12.87 billion) with a book value per share of $12.83 (2018: $10.73).




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