JP reports 80% growth in year end profits attributable to shareholders

March 2, 2021

Jamaica Producers Group Limited (JP), for the year ended December 31, 2020, booked a 2% decrease in revenue to total $20.99 billion compared to the $21.46 billion reported in 2019. The Group posted a fourth quarter revenue of $6.16 billion, a 1% increase (2019: $6.08 billion).

The Food and Drink Division reported a 1% increase revenue to total $12.72 billion relative to $12.64 billion reported in 2019. While Logistics and Infrastructure decreased 6% year over year to total $8.28 billion (2019: $8.82 billion) and Corporate Services division earned $86.65 million relative to $74.33 million in 2019, a 17% increase.

The cost of sales for the year-end increased by 5% to total $15.49 billion compared to $14.70 billion reported for the comparable period in 2019. As a result, gross profit increased to total $5.51 billion, a 18% decline on the $6.76 billion documented in 2019. Gross profit for the quarter amounted to $1.23 billion compared to $1.50 billion booked for the same quarter of 2019. Other income increased to $382.82 million (2019: $322.39 million), a 19% growth relative to the prior corresponding period.

JP’s selling, administration and other operating expenses decline 3% to close at $3.26 billion, this compares to $3.37 billion booked a year earlier. JP also recorded a share of profit in joint venture and associated company of $4.08 million, relative to a profit of $26.82 million in the previous year. While gain on disposal of interest in associate closed the period at $1.87 billion (2019: nil).

Finance cost was reported at $293.40 million for the period relative to the $307.15 million reported in 2019. This resulted in a profit before taxation of $4.22 billion for the period (2019: $3.43 billion). Profit before tax for the quarter totalled $687.83 million versus $830.68 million reported for the same quarter of 2019.

The Group incurred tax charges of $478.05 million (2019: $701.99 million). Consequently, net profit for the year-end rose by 37% to $3.74 billion (2019: $2.73 billion). Net profit for quarter totalled $571.75 million (2019: $658.77 million).

Notably, net profit attributable to stockholders totalled $2.17 billion; this compares to $1.20 billion, an 80% increase. Net profit attributable to stockholders for the quarter declined by 21% to total $194.42 million (2019: $245.37 million).

Earnings per share for the period amounted to $1.93 (2019: $1.07). EPS for the quarter amounted to $0.17 (2019: $0.22). The number of shares utilized in the computations amounted to 1,122,144,036 units. JP stock last traded on March 01, 2021 at $19.79 with a corresponding P/E of 10.25 times.

Balance Sheet Highlights:

As at December 31, 2020, the Group’s asset base totalled $40.96 billion, 6% more than its value of $38.60 billion a year ago. This increase in total assets was due largely to increases in ‘Securities purchased under resale agreements’ which closed at $7.65 billion (2019: $5.38 billion). Also. ‘Property, Plant & Equipment’ contributed to the growth closing at $22.31 billion (2019: $21.84 billion).

The Group ended the period with equity attributable to shareholders in the amount of $16.13 billion relative to $13.84 billion in 2019. The company now has a book value per share of $14.38 versus $12.33 in 2019.


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