JBG shareholders face dividend drought as company prioritises debt reduction after fraud crisis
JAMAICA Broilers Group (JBG) shareholders should brace for significantly reduced or eliminated dividends in the near term as the company prioritises debt reduction and balance sheet repair in the aftermath of a devastating US fraud scandal, CEO Chris Levy has indicated.
While the company’s official dividend policy remains 20 per cent of profits after tax, Levy made clear that practical cash considerations will override the formula as JBG navigates a “tight” liquidity position following $46 billion in balance sheet adjustments.
“I’m not saying we’re going to change the dividend policy, but I’m going to tell you that I think that it’s going to lean a bit more to a cash-based situation,” Levy stated during the Mayberry Investor Forum on Friday. In a blunt assessment, he added, “I think it’s ridiculous to borrow money to pay dividends.”
The warning acknowledges the delicate balance between rewarding loyal shareholders and ensuring the company’s financial stability. Levy, himself a major shareholder, expressed personal sympathy for investors depending on this income.
“As a large shareholder, I miss my dividends too,” Levy admitted. “So there’s a lot of incentive personally to get this policy back on the road.”
However, he emphasised that any decision on restoring payouts would be made “in consultation with our financial partners and all the various stakeholders,” signalling that lenders’ concerns about deleveraging will carry significant weight.
The company’s financial position, while stabilising, remains under pressure. JBG is currently finalising a complex $24-billion refinancing package that will move significant debt from current to long-term obligations. Simultaneously, the company is engineering a dramatic repair of its shareholder equity through a $40-billion asset revaluation.
Ian Parsard, senior vice-president with responsibility for finance and corporate planning, outlined the broader financial strategy. “The focus is on generating profits and building that retained earnings number so that we continue the upward trajectory of rebuilding that shareholders equity,” he explained.
The company paid approximately $511 million in dividends during 2025 despite reporting a net loss and negative equity position — a situation that appears unlikely to repeat as management focuses on what Levy calls “stabilising the boat” and “getting our legs back under us”.
The message to investors is one of near-term sacrifice for long-term stability. While the company projects strong operational performance from its Jamaican divisions and US fertile egg business, available cash will be directed towards debt reduction first, with shareholder distributions taking a back seat until the balance sheet is firmly repaired.