However revenues were flat for the year, up by only 2%

The Jamaica Broilers Group has recorded strong profits for its 2021 financial year, which ended on May 2.

Net profits increased 76 per cent to a total of $2.40 billion coming from $1.36 billion in 2020. Profit before taxation increased by 73 per cent for the year end amounting to $3.21 billion compared to the $1.85 billion booked for the same period last year.

Taxation for the year amounted to $806.76 million, up from the 2020 posting of $493.27 million. As for the May quarter, Jamaica Broilers’ net profit totalled $534.79 million relative to $222.68 million booked in the prior corresponding quarter.

Big jump in shareholders’ profit

Net profit attributable to shareholders amounted to $2.34 billion, 67 per cent higher than the $1.40 billion reported in 2020. Net profit attributable to shareholders for the May quarter amounted to $539.44 million, which is 140 per cent more than the $214.48 million reported in 2020.

Operating profit increased by 35 per cent, totalling $4.06 billion for the year end relative to $3.00 billion last year. As for the fourth quarter, operating profit closed at $1.09 billion relative to $798.46 million booked in 2020

Jamaica Broilers reported total revenues of $56.95 billion for the year, representing a marginal increase of two per cent on the $55.75 billion reported in 2020. The Jamaican Operations of the group contributed $33.83 billion, which represents approximately 60 per cent of total revenues decreasing by three per cent relative to $34.76 billion in 2020.

The American Operations (approximately 36 per cent of total revenue) contributed $20.75 billion increasing 10 per cent relative to $18.92 billion for the comparable period, and Haiti Operations (approximately four per cent of total revenue) contributed $2.37 billion compared to $2.07 billion reported in 2020. 

Jamaica Broilers’ revenue for the fourth quarter increased by three per cent to $15.63 billion, coming from $15.17 billion as at May 2020.

Higher distribution costs

Cost of Sales for the period increased by three per cent to $42.33 billion from $41.14 billion in 2020. Distribution costs increased three per cent to $2.04 billion for the period compared to $1.97 billion in the corresponding period last year, while administration and other expenses declined by four per cent to $9.43 billion coming from $9.84 billion posted in 2020.

The company reported other income of $847.83 million for the period relative to $366.53 million reported in 2020, a 131 per cent increase year on year. The movement was mainly attributed to an insurance claim of $236.27 million (2020: nil) and other income of $343.48 million relative to $150.75 million for the prior year. 

Net impairment change on trade receivables amounted to $63.18 million versus a net impairment loss of $161.71 million in 2020. JBG reported no finance income for the year compared to the $36.46 million reported last year. Total comprehensive income for the year end closed at $3.69 billion (2020: $1.61 billion).

Total assets amounted to $51.11 billion as at April 30, 2021 relative to $44.23 billion a year prior. This 16 per cent increase in assets was as a result of ‘Inventories’ and ‘Biological assets’ which closed at $12.91 billion (2020: $9.48 billion) and $11.43 billion (2020: $9.11 billion), respectively.