Jamaica Producers Group Limited (JP)
For the six months ended June 30, 2017:
For nine months ended September 30, 2017, Jamaica Producers Group Limited (JP) experienced a 39% increase in revenue to total $11.38 billion compared to the $8.20 billion reported in 2016. The company posted third quarter revenue of $3.98 billion a 9.76% increase (2016: $3.63 billion).
The Food & Drink Division had a $179.29 million increase in revenue to total $6.21 billion relative to the $6.03 billion reported in 2016. “The Division now comprises our portfolio of subsidiaries that are engaged in farming, food processing, distribution and retail of food and drink. The F&D business has production facilities in Europe and the Caribbean and operates a distribution centre in the United States.”
Logistics and Infrastructure increased $3.06 billion or 145% year over year to total $5.18 billion (2016: $2.11 million). This increase was associated with the addition of Kingston Wharves to the Profit and Loss as a subsidiary. According to JP “ Until June 23, 2016, Kingston Wharves was classified as an associate for accounting purposes and, consequently, prior to this date, only JP’s 42% share of earnings was brought into our Profit and Loss Account. On a like‐for‐like basis, the L&I Division’s earnings for 2017 are up 29% on the prior year.”
The cost of sales for the nine months increased by 24% to total $7.77 billion compared to $6.29 billion reported for the comparable period in 2016. As a result, Gross Profits increased to total $3.61 billion, a 90% growth on the $1.90 billion documented in 2016. Other income year over year increased from $131.69 million to $122.23 million, a 8% increase.
JP’s administration, selling and other operating expenses rose 23% to close at $2.18 billion, this compares to $1.77 million booked a year earlier. JP also recorded a share of profit in joint venture and associated company of $155,000, relative to a profit of $438.80 million in the previous year.
Finance cost was reported at $214.02 million for the period relative to the $174.55 reported in 2016. This resulted in a profit before taxation of $1.35 billion for the period (2016: $3.64 billion). Of note, the company had recorded a one-off gain on recognition of subsidiary of $2.46 billion in 2016.
The company incurred tax charges of $245.20 million (2016: $142.08 million), resulting in Net Profit for the period declining 68% to $1.11 billion (2016: $3.49 billion). Notably, net profit attributable to stockholders totaled $426.45 million; this compared to $3.38 billion a 515% decline. Net Profit attributable to shareholders for the quarter declined 74% to total $175.42 million relative to the $676.01 million 2016.
Earnings per share for the period amounted to $0.38 (2016: $3.01), EPS for the quarter amounted to $0.16 (2016: $0.60), while the trailing earnings per share amounted to $0.88. Additionally, JP’s stock price closed at $15.18 as at the end of trading on November 14, 2017. The number of shares utilized in the computations amounted to 1,122,144,036 units.
“The Group has continued to rationalise its cost base and, in line with this programme, we expect to complete the 2017 financial year with reduced overhead costs relative to 2016. We will further benefit in 2018 by relocating all our head office activities from Oxford Road in New Kingston to the places in Kingston where our operations are centered, including purpose‐built corporate offices in Newport West, adjacent to Kingston Wharves.”
Balance Sheet Highlights:
As at September 30, 2017, the company’s assets totaled $31.59 billion, 10% more than its value of $28.84 billion a year ago. This increase in total assets was due largely to an increase in Non-Current assets of $2.59 billion.
The company ended the period with equity attributable to equity holders of the parent in the amount of $11.10 billion relative to $10.03 billion in 2016. The company now has a book value per share of $9.89 versus $8.94 in 2016.