December 06, 2018
JBG reported Total Revenues of $25.71 billion for the first six month ended October 31, 2018, a 12% increase on the $23.02 billion reported in 2017. Of total revenue
The Jamaica Operations contributed $17.16 billion which represents approximately 67% of total revenues increasing by 7% relative to $16.04 billion in 2017. Management noted, “this improvement was attributed to increased poultry sales and enhanced inventory management.”
- US Operations (approximately 29% of total revenue) contributed $7.38 billion increasing 24% relative to $5.95 billion for the prior year’s comparable period. According to JBG the movement was, “driven by increased sales of our main products – fertile eggs and baby chicks, as well as, feed sales from the acquired feed mill. Our US Operations reported a segment result of $666 million, which was a 1% decrease from the prior year’s result of $674 million. this decrease was primarily attributable to one-off staff cost elements and acquisition costs related to the recent feed mill purchase; these cost elements are not expected to recur.”
- Other Caribbean Operations (approximately 5% of total revenue) contributed $1.17 billion compared to $1.03 billion reported in 2017. Revenue for the quarter climbed 18% to $13.55 billion versus $11.53 billion reported for the same quarter of 2017. JBG noted, “total revenue for our Haitian Operations increased by 13% over the prior year driven by increased sales of table eggs.”
- Cost of Sales for the period increased by $2.12 billion or 12% to $19.50 billion from $17.39 billion in 2017. Consequently, Gross Profit increased to $6.22 billion, up 10% relative to $5.63 billion reported in 2017. Gross Profit for the quarter rose 3% to close at $3.04 billion (2017: $2.96 billion).
Distribution costs increased 7% to $917.89 million for the period compared to $859.05 million for the corresponding period last year, while administration and other expenses grew by 13% to $4.21 billion (2017: $3.72 billion). The movements in Distribution and Administrative costs year on year was, “due primarily to exchange movements, salary increases, increased staff complement and distribution costs related to the recent acquisition of the feed mill. These results also include the operating expenses of the new hatchery in Pennsylvania and the costs associated with the formation of the Shareholders’ Trust – these costs were not in last year’s comparative results.”
The Company reported other income of $142.17 million for the period relative to $140.81 million reported in 2017, up 1% year on year.
Operating Profit increased by 3%, totalling $1.23 billion for the six month period relative to $1.20 billion last year. Operating Profit for the quarter amounted to $562.55 million, down 26% from the $758.96 million reported for the corresponding quarter of 2017.
JBG reported Finance Income of $201.48 million (2017: $13.84 million), while finance costs climbed by 52% to $471.45 million relative to $310.53 million in 2017.
Profit before Taxation increased 7% to $957.28 million (2017: $898.70 million). Following taxation for the period of $313.02 million (2017: $240.26 million), net profit declined 2% to a total of $644.26 million (2017: $658.44 million). Net Profit for the quarter contracted 48% to $230.89 million (2017: $445.86 million).
Net Profits attributable to shareholders amounted to $629.32 million, 1% lower than the $633.47 million reported in 2017. Net Profits attributable to shareholders for the quarter amounted to $230.48 million, 47% less than the $435.78 million reported in 2017.
Earnings per share (EPS) for period totalled $0.525 (2017: $0.528). The earnings per share for the quarter amounted to $0.192 relative to $0.363. The twelve months trailing EPS totalled $1.65. The total number of shares employed in our calculations amounted to 1,199,276,400 units. Notably, JBG’s stock price closed the trading period on December 6, 2018, at a price of $28.77.
JBG noted, “Our Group operates in three (3) different countries and due to significant foreign exchange volatility during the second quarter, we incurred foreign exchange losses of $231 million. The exchange losses resulted in a 47% reduction from profits attributable to stockholders for the quarter ended October 2017. We are anticipating relative stability in foreign exchange as we progress towards the end of our financial year ending April 2019.”
Additionally, JBG indicated that, “effective October 2018, Jamaica Broiler Group Limited acquired an additional 4% stake in Haiti Broilers S.A., thereby increasing our holdings to 72%.”
Balance sheet at a glance:-
Total assets amounted to $33.15 billion as at October 31, 2018 relative to $27.92 billion a year prior. This 19% increase in assets was as a result of an increase in ‘Property, Plant and Equipment’ and ‘Cash and short term investments’ to $9.18 billion (2017: $7.81 billion) and $2.98 billion (2017: $1.23 billion) respectively.
Shareholder’s Equity decreased by $1.99 billion totalling $12.87 billion (2017: $14.86 billion) with a book value per share of $10.73 (2017: $12.39).
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