Jamaica Broilers Group earns better results even during COVID-19

Jamaica Broilers Group earns better results even during COVID-19

US side shows an increase, Haiti still losing

BY DURRANT PATE
Observer business writer

Sunday, August 30, 2020

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The Jamaica Broilers Group (JBG) is now reaping the benefits of its American subsidiary, which was mainly responsible for it's after-tax profit of $383 million recorded for its first quarter which ended on August 1, 2020.

The group's American operations, which have been rebranded Best Dressed Chicken (US), came out on top of all three market segments with the Jamaican operations reporting flat performances while the Haitian subsidiary continues to chalk up losses.

The $383 million in after-tax profit for the first quarter was an increase of six per cent over the corresponding period in 2019.

This increase in net profit was also attributable to careful management of the group's operating expenditures.

Group revenues for the first quarter amounted to $12.6 billion with a gross profit for the quarter of $2.9 billion, thus remaining strong.

In its just released unaudited financial results for the quarter ended August 1, 2020, JBG reports that its US operations reported a segment result of $316 million.

External revenue increased by 31 per cent over the period but was offset by the performance of lower sales of fertile hatching eggs.

According to JBG, “sales of The Best Dressed Chicken line of products have been very well received and are driving us to increase production at a very aggressive pace. The depth of our investments in the US poultry industry will certainly be of benefit in these times.”

SEGMENT PERFORMANCE

On the other hand, the Jamaica operations reported a segment result of $730 million. Revenue for the Jamaican segment recorded a decline of 16 per cent, as a result of the COVID-19 pandemic.

However, “the impact on the segment result was mitigated by the diversification of income streams and enhanced product portfolio management,” JBG reports.

The Haiti operations reported a segment result for the first quarter of $11 million, which is $8 million or 40 per cent per cent below last year's segment result of $19 million.

Total revenue reduced by 13 per cent with the current decline in performance attributed to the current political and economic instability being experienced in Haiti.

GROUP OPERATIONS

The group's overall operations produced an operating profit of $851 million, an increase of 25 per cent over the prior year. A combination of many factors led to this performance, not least according to the company “being the sterling contribution of the staff, employees and contractors of the group”.

JBG contends that it is seeing improved corporate results due to early decision-making, aggressive cost reductions and improved foreign exchange positions.

In addition, there has been a refocussing on the absolute basics to keep the company running profitably due to the challenges brought on by COVID-19.

This has translated to a better and deeper foundation for the company.

JBG Chairman Robert Levy and Group President and Chief Executive Officer Christopher Levy say the operating divisions are very well positioned for growth as the various economies learn how to manage the pandemic and begin the steps to reopening.


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