Jamaica Broilers Group revenues up 15%
Published:Wednesday | March 27, 2019 | 12:00 AMSteven Jackson/Business Reporter
Third-quarter revenue at the Jamaica Broilers Group (JBG) grew by double-digits but costs contained profits to single-digit growth.
Earnings per share totalled 73 cents for the quarter ending January 2019 versus $61 cents a year earlier.
The group made revenues for the quarter of $14.6 billion, a 15 per cent increase over the $12.7 billion achieved a year earlier while profit to shareholders grew to $755 million for the quarter or 3.4 per cent over the period.
Higher finance costs at $257 million grew 55 per cent year on year while administrative expenses grew to $2.26 billion or 20 per cent over the period.
The group, which continues to invest in growing its base in the United States and the Caribbean, explained that costs were primarily higher due to exchange rate movements, salary increases, increased staff complement and distribution costs related to the recent acquisition of a feed mill.
The group, however, continues to manage its costs as profit growth over the third quarter at 3.4 per cent was higher than that for the nine-month period at 1.4 per cent.
REASON FOR IMPROVEMENT
“This improvement was attributed to increased poultry sales and enhanced inventory management,” JBG stated in its financials.
Specifically, over the nine months to January 2019 the group made profit of $1.38 billion when compared with $1.36 billion a year earlier. Also revenues totalled $40.3 billion over the nine months when compared with $35.7 billion, a year earlier.
The Jamaica operations reported revenue of $26.8 billion or 6.0 per cent higher, year on year, driven by poultry sales. The local segment’s profit rose 23 per cent to $2.5 billion compared with $2 billion a year earlier.
Total revenue for the United States operations at $13.9 billion increased by 28 per cent over the prior year. The growth was driven by increased sales of fertile eggs and baby chickens, as well as feed sales, stated the group.
The United States operations reported segment results of $1.1 billion, which was a 16 per cent rise, year on year from $973 million.
HAITIAN PERFORMANCE
Total revenue from the Haitian operations increased to $1.76 billion or nine per cent over the prior year, driven by increased sales of table eggs. That segment profit amounted to $146 million or four per cent below the $152 million earned the previous year.
The other Caribbean operations reported revenue of $441.5 million compared with $386 million a year earlier. The segment result totalled $1.5 billion due to fair value accounting of its investments held in a trust.
“The significant increase is mainly due to the net results of the JBGL Stockholders Nominee Limited, driven by the unrealised fair value gains of the shares held,” stated the group, adding that the gains did not distort profits as the amount was eliminated upon consolidation within the group financials.
Last February, the board approved the formation of JBGL Stockholders Nominees Limited as a trust to purchase JBG shares from major shareholders, which it would hold for the benefit of all shareholders in proportion to their shareholding, according to financials.
After its formation, between March 30 and April 26, the trust signed agreements with two sets of shareholders to purchase 165.4 million shares at an average cost of $18.19, according to the annual report. The shares ended the quarter at $29.06 and now trades within the $33 range, equivalent to a $39.6-billion market cap. Shareholders equity totalled $13.8 billion as at January 2019.