85% jump in Jamaica Broilers pre-tax profit for the half year period

85% jump in Jamaica Broilers pre-tax profit for the half year period

Haitian operations continue to drag on the group's financial performance

BY DURRANT PATE
Observer Business Writer

Sunday, December 13, 2020

Print this page Email A Friend!


Jamaica Broilers Group (JBG) recorded a significant jump in its pre-tax profit for the half year period ended October, which went up by 85 per cent to $1.5 billion.

This creditable performance came in spite of the many challenges to JBG operations across the Caribbean region and the United States of America. For the comparable period last year, the pre-tax profit was $823.4 million.

JBG, which has four distinct business operations in Jamaica, Haiti, other Caribbean countries and the United States, all suffered from the pandemic. However, all operations save and except Haiti posted profits during the period under review.

In its just released second quarter and six-month unaudited financial results for the period ended October 31, 2020, profits attributable to stockholders went up by 51 per cent to $1.03 billion or $1.02 per stock unit for the six-month period under review. Profit attributable to stockholders for the same period in 2019 was $685.6 million.

Group revenues and gross profit for the six-month period were flat. Revenues amounted to $26.5 billion coming from $26.2 billion for the same period in 2019 while gross profit inched downwards to $6.45 billion coming from $6.49 billion in 2019.

JAMAICAN OPERATIONS DID WELL

The Jamaican operations did well, reporting a segment result of $1.8 billion, which was $400 million or 25 per cent above last year's segment result of $1.4 billion. In their report to shareholders on the half-year performance, the directors of the company state that “the COVID-19 pandemic has adversely impacted our Jamaica operations revenue as we have seen a decline of eight per cent from the prior year.”

However, the local operation of JBG was able to record a commendable 25 per cent improvement over the prior year by increasing efficiencies and the continued enhancing of customer relationships. The American operations also performed creditable given the challenges caused by COVID-19.

The American operations reported a segment result of $696 million, representing a four per cent increase over the previous year.

Total revenue increased by 18 per cent over the prior year driven by increased poultry and feed sales.

The directors say the Best Dressed Chicken line of products continued to surpass expectations and has been well received in the American market.

MOUNTING LOSSES ONHAITIAN OPERATIONS

At the same time losses continue to mount on JBG Haitian operations, which reported a segment loss of $38.7 million compared to a prior year loss of $5.8 million. Total revenue declined by six per cent.

According to the directors, “the current decline in performance is as a direct result of the political and economic instability being experienced in Haiti along with effects from the pandemic.”

Finance costs for the group showed a reduction of $338 million compared to last year, resulting from increased foreign exchange gains mainly from the significant currency revaluation in its Haiti operations.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaper-login


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT