Date: November 14, 2018
Berger Paints Jamaica Limited (BRG) for the nine months ended September 30, 2018 reported total revenues of $1.73 billion, a 13% increase relative to $1.52 billion reported for the comparable period in 2017. Total revenues for the quarter totalled $607.83 million, 2% less than the $620.98 million booked in 2017.
The company reported a 38% increase in ‘changes in inventories of finished goods and work in progress’ to $182.61 million from $49.58 million booked for the same period in 2017.
BRG booked other income of $967,000 a 76% decline from the $4.06 million reported last year.
The company recorded an overall uptick in expenses. The company noted this increase was, “stemmed from investment in additional storage space as well as some one-off 0077pnesesrelating to improvement to the Berger plant.”
- Raw materials and consumables climbed 38% to close at $1.03 billion (2017: $746.24 million).
- Depreciation costs totalled $23.73 million (2017: $20.46 million) .
- Manufacturing expenses totalled $92.23 million (2017: $84.79 million), a 9% increase year over year.
- Employee benefits expenses climbed 8% to $387.30 million (2017: $359.59 million).
- Other operating expenses increased 40% to $314.16 million relative to the $225.19 million recorded in 2017.
Profit before tax for the period amounted to $63.00 million, also a 55% decline relative to the $141.44 million reported for the comparable period in 2017.
BRG booked taxation for the period of $19.77 million in contrast to a tax credit of $1.60 million in 2017’s corresponding period. Consequently, Net Profit for the nine months period decreased 70% to total $43.24 million when compared with the $143.04 million reported for the corresponding period in 2017. Net profit for the quarter totaled $8.97 million relative $53.92 million for the corresponding quarter in 2017.
Consequently, Earnings per share for the period ended September 30, 2018 amounted to $0.20 (2017: $0.67), while earnings per share for the quarter amounted in $0.04 (2017: $0.25).The trailing twelve months earnings per share amounted to $0.65. The total number of shares used in the calculations amounted to 214,322,393 units. Notably, BRG’s stock price closed the trading period on November 14, 2018 at a price of $20.60
Balance Sheet Highlights:
The company, as at September 30, 2018 recorded total assets of $1.89 billion, an increase of 27% when compared to $1.49 billion recorded last year. This was due to an increase in ‘Inventories’ to $613.49 million (2017: $412.41 million), ‘Trade and other receivables’ which closed at $513.74 million (2017: $470.72 million). Other contributors to the increase in the total asset base were ‘Property, Plant and Equipment’ and ‘Cash and Cash balances’ which closed at $258.55 million (2017: $204.35 million) and $315.85 (2017: $224.08 million) respectively.
Total Stockholders’ equity as at September 30, 2018, closed at $1.03 billion, a 9% increase from $947.10 million for the corresponding period last year. This resulted in a book value per share of $4.82 compared to the value of $4.42 as September 30, 2018.
Disclaimer: 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.