JP posts 4% growth for first quarter net profit

May 16, 2023

Jamaica Producers Group Limited (JP), for the three months ended March 31, 2023, booked a 2% increase in revenue to total $7.06 billion compared to the $6.91 billion reported in 2022.

The Food and Drink Division reported a 2% increase revenue to total $4.20 billion relative to $4.12 billion reported in 2022. While Logistics and Infrastructure rose 2% year over year to total $2.86 billion (2022: $2.79 billion) and Corporate Services division earned $34.91 million relative to $32.02 million in 2022, a 9% increase.

The cost of sales for the quarter increased by 1% to total $5.06 billion compared to $4.99 billion reported for the comparable period in 2022. As a result, gross profit increased to total $2 billion, a 4% increase on the $1.92 billion documented in 2022.

JP’s selling, administration and other operating expenses rose 12% to close at $1.32 billion, this compares to $1.17 billion booked a year earlier. JP also recorded a share of profit in joint venture and associated company of $249.54 million, relative to a profit of $146.28 million in the previous year.

The Group incurred tax charges of $190.11 million (2022: $132.15 million). Consequently, net profit for the quarter rose by 4% to $840.55 million (2022: $810.77 million).

Notably, net profit attributable to stockholders totalled $439.05 million; this compares to $406.09 million, a 8% increase.

Earnings per share for the period amounted to $0.39 (2022: $0.36). The number of shares utilized in the computations amounted to 1,122,144,036 units. JP stock last traded on May 15, 2023 at $20.99 with a corresponding P/E of 10.10 times.

Balance Sheet Highlights:

As at March 31, 2023, the Group’s asset base totalled $51.88 billion, 15% more than its value of $45.26 billion a year ago. This increase in total assets was due largely to increases in ‘Cash and Cash Equivalents’ which closed at $1.95 billion (2022: $973.34 million). Also. ‘Intangible Assets’ contributed to the overall growth closing at $2.82 billion (2022: $1.55 billion).

The Group ended the period with equity attributable to shareholders in the amount of $19.93 billion relative to $18.27 billion in 2022. The company now has a book value per share of $17.76 versus $16.28 in 2022.


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.