JAMAICA Broilers Group Limited cut losses sharply in the nine months to January as stronger Jamaican operations helped stabilise the poultry group after last year’s accounting crisis, though its struggling US business continues to keep the company in the red.

The company reported a net loss of about $1 billion for the nine months to January, sharply reduced from the $3.5-billion loss recorded in the corresponding period last year, according to its third-quarter interim financial report.

The improvement reflects a recovery in operating performance. Jamaica Broilers posted operating profit of about $2 billion, reversing an operating loss of roughly $1.2 billion a year earlier.

Revenue for the nine-month period reached approximately $73.6 billion, while gross profit rose 22 per cent to about $13.5 billion, pointing to improved margins even as revenue growth remained modest.

Management attributed the stronger margins to tighter operational execution across the group’s businesses.

“The gross profit improvement reflects continued focus on operational efficiencies and disciplined execution across our businesses,” the company said in commentary accompanying the financial statements.

Despite the gains, management said part of the company’s US operations continues to face pressure.

“The particular US segment continues to be impacted by market selling prices and production costs, and is not performing well,” the company said.

That weakness contrasts with Jamaica Broilers’ domestic operations, which remain the group’s primary earnings engine.

The Jamaica segment generated profit of about $4.3 billion on revenue of approximately $44 billion, accounting for the majority of the group’s earnings during the period.

The latest results come as Jamaica Broilers works to stabilise its finances, after accounting irregularities uncovered last year in its United States operations triggered a $46-billion restatement of the group’s financial statements and plans to replace long-standing auditor PricewaterhouseCoopers with Ernst & Young.

The company is also negotiating the resolution of roughly US$120 million in debt tied to its US operations, while a $24-billion refinancing arrangement with local banks has provided additional liquidity as it restructures its balance sheet.

Jamaica Broilers said it remains focused on improving operational efficiency and strengthening performance across its businesses as it works to restore sustained profitability.

Jamaica Broilers’ US operations continue to weigh on the group’s overall performance despite improvements in its Jamaican business.