JP netted $1.62 billion for year ended Dec 2017

March 2, 2018

For year ended December 31, 2017, Jamaica Producers Group Limited (JP) experienced a 34% increase in revenue to total $16.16 billion compared to the $12.08 billion reported in 2016. The company posted fourth quarter revenue of $4.77 billion a 23% increase (2016: $3.88 billion).

The  Food & Drink Division had a $735.41 million increase in revenue to total $8.81 billion relative to the $8.08 billion reported in 2016. The Food and Drink Division, “The Division benefitted from a particularly strong performance from our European juice business and improved results in our Tortuga International subsidiary. Our fresh juice business entered new markets with new products and new customers and achieved record sales. Tortuga International benefitted from a full year of streamlined and consolidated bakery operations, as well as, a focused marketing campaign targeting the travel retail channel. The positive performance of Hoogesteger and Tortuga International was partially offset by poor yields leading to adverse results on our banana and pineapple farms in Jamaica.”

Logistics and Infrastructure gross revenue increased $3.38 billion or 85% year over year to total $7.35 billion (2016: $3.97 million). JP states, “In line with the strong performance of Kingston Wharves, the major share of the Group’s profit during the year was earned in this reporting segment. In addition to Kingston Wharves (which operates a leading multi-purpose port serving the Caribbean region), this Division also includes JP Shipping Services Limited, a leading freight-forwarder providing shipping services between Caribbean ports and the United Kingdom.”

The Corporate Services division earned $87.57 million relative to $154.57 million in 2016, a 43% decrease year over year.

The cost of sales for the year ended December 2017 increased by 25% to total $11.01 billion compared to $8.83 billion reported for the comparable period in 2016. As a result, Gross Profits increased to total $5.14 billion, a 59% growth on the $3.24 billion documented in 2016. Other income year over year decreased from $164.79 million to $74.32 million, a 55% drop.

JP’s administration, selling and other operating expenses rose 14% to close at $2.93 billion, this compares to $2.58 billion booked a year earlier. JP also recorded a share of profit in joint venture and associated company of $3.78 million, relative to a profit of $446.69 million in the previous year.

Finance cost was reported at $308.81 million for the year ended December 2017 relative to the $309.59 reported in 2016. This resulted in a profit before taxation of $1.98 billion for the year ended December 2017, (2016: $4.53 billion).  Of note, for the year ended December 2016 the company had recorded a gain on disposal of joint venture and gain on recognition as subsidiary of $649.91 million and $2.92 billion in 2016 compared to nil in 2017.

JP incurred tax charges of $356.66 million (2016: $222.96 million), resulting in Net Profit for the period declining 62% to $1.62 billion (2016: $4.31 billion). Notably, net profit attributable to stockholders totaled $661.88 million; this compared to $3.94 billion a 83% decline year over year. Net Profit attributable to shareholders for the quarter declined 58% to total $235.43 million relative to the $557.29 billion 2016.

Earnings per share for the year ended December 31, 2018 amounted to $0.59 (2016: $3.51), while the EPS for the quarter amounted to $0.21 (2016: $0.50). The number of shares utilized in the computations amounted to 1,122,144,036 units. JP stock price closed the trading period in March 1, 2018 at a price of $15.87.

Balance Sheet Highlights:

As at December 31, 2017, the company’s assets totaled $32.67 billion, 9.3% more than its value of $29.88 million a year ago. This increase in total assets was due largely to an increase in Current assets of $1.02 billion or a 15% increase. The movement was due to a growth in Accounts receivable and Cash and Cash Equivalents which closed at $2.45 billion (2016: $1.86 billion) and $885.25 million (2016: $632.91 million) respectively.

The company ended the year with equity attributable to equity holders of the parent in the amount of $11.26 billion relative to $10.42 billion in 2016. This resulted in a book value per share of $10.04 versus $9.28 in 2016.



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