Durrant Pate/Contributor

Jamaica Broilers Group (JBG) has seen its American operations making further in-roads in that market to the extent that it has been the strongest growth area for the group during the just ended July quarter.

JBG produced a net profit of J$1.2 billion for the three months ended July 29, 2023, representing a 16 per cent increase over the J$1.1 billion posted for the same quarter of 2022. JBG American operations registered the strong segment result of J$1.2 billion for the first quarter, which was 44 per cent above last year’s result.

However, the operations experienced a three per cent decline in total revenue, due primarily to falling prices in most of its product lines but there was a 56 per cent year-over-year increase in poultry volumes, which assisted in offsetting the negative market pressures.

Impressive American market acceptance

JBG’s South Carolina plant, which produces the Best Dressed Chicken line of products has gained impressive market acceptance in the United States. The Jamaican operations reported a segment result of J$1.7 billion, which was J$130 million or seven per cent below last year’s segment result.

The reduction was mainly driven by increased pressure from high levels of imports, affecting baby chick sales to small farmers. Total revenue for JBG’s Jamaica operations showed an increase of five per cent over the corresponding quarter, which was mainly driven by poultry sales.

Group revenues for the first quarter amounted to J$23.4 billion, a two per cent per cent increase above the J$23.0 billion achieved in the corresponding quarter of the previous year. Goss profit for the quarter closed on J$5.7 billion, an eight per cent increase over 2022.

Profit before taxation amounted to J$1.63 billion, a 17 per cent increase relative to $1.40 billion reported in 2022. With taxation amounting to J$392.75 million (2022: J$331.91 million), resulting in net profit attributable to shareholders of J$1.24 billion (2022: J$1.08 billion).

Consequently, earnings per share (EPS) for the quarter of J$0.89. The twelve-month trailing EPS was $3.85 with stock price closing yesterday (September 8) at J$31.96 with a corresponding P/E ratio of 8.31x.

More on JBG financials

‘Cost of Sales’ amounted to J$17.68 billion, a negligible increase from the corresponding quarter last year. Consequently, gross profit increased by 8 per cent to J$5.71 billion compared to J$5.31 billion.

‘Other Income’ increased by 103 per cent to close at J$161.38 million (2022: J$79.32 million), while ‘Distribution Costs’ increase by four per cent from J$689.81 million in 2022 to J$720.24 million for the quarter. Consequently, ‘Administration and other expenses’ for the first quarter amounted to J$2.92 billion, a two per cent decrease relative to J$2.98 billion reported in 2022. JBG’s assets totalled J$78.79 billion (2022: J$62.68 billion).

The increase in assets was mainly attributed to a J$6.80 billion increase in ‘Property, Plant and Equipment’ to close at J$22.21 billion. Shareholder’s equity was J$26.80 billion (2022: J$22.01 billion), representing a book value per share of J$22.35 (2022: J$18.35).