Fertile eggs sales buttress profit at Jamaica Broilers
WITH one quarter left to go before the financial year end in May, Jamaica Broilers appears on track to better the results for the year ended in 2015 when it earned after-tax profit of $1 billion on revenue of $34 billion.
In its interim report for the nine months ended January 30, 2016, the company reports net profit of $1.21 billion, which is 96 per cent better than $615.05 million earned after tax for the similar period in 2015.
Revenues for the nine-month period have also improved from $25.6 billion last year to $27.99 billion.
For the third quarter ending January this year, group revenues were $9.9 billion compared to the $9.05 billion in the corresponding period.
Net profit was $492.8 million, up 21 per cent on $404.76 million earned in third quarter 2015.
Directors said the company continues to benefit from the hard currency earnings of JBG’s US operations, which did well in the sale of fertile eggs, producing segment results year to date of $798 million, compared to $632 million last year.
“Our presence in the markets remains strong with a broad customer base, and we are seeing the benefits of the US-dollar hard currency earnings,” Chairman Robert Levy and President & Chief Executive Officer Christopher Levy said in their preamble to the period’s results.
JBG in its Jamaica operations recorded increased volumes in the sale of poultry and feed products.
“Our targeted marketing strategies are showing good results. In addition, we continue to focus on cost containment and improvements in the production and processing of poultry and feed,” the company executives stated.
Haiti Broilers SA during the quarter increased production and sale of table eggs to 17 per cent of the market, compared to 13 per cent at the end of the third quarter last year, it was noted.
Currency depreciation and inflation continues to impact operations in the Caribbean.
“The Haitian gourde continues to depreciate against the US dollar and therefore ongoing cost and selling price adjustments present some challenges. Distribution, selling and administrative costs, quarter over quarter, essentially reflect inflation increases and the effect of the depreciation of the Jamaican dollar against the US dollar,” the directors said.
Earnings per stock unit for the quarter were 41 cents compared to 34 cents in the corresponding quarter last year, a 21 per cent increase.
