THE Jamaica Broilers Group (JBG) is seeking to deepen its presence in the rest of the Caribbean while doubling down on its plans for its United States of America (USA) business.

While JBG doesn’t segregate earnings from this segment as a separate line item, it was noted that export sales from Jamaica increased 15 per cent in the company’s last financial year, and that a significant portion of its growth came from its further processed product sales which increased 51 per cent during the period. Its 2023 annual report also outlined that the company was excited about entering the Barbados market.

Jamaica Broilers currently exports to Trinidad and Tobago, Anguilla, St Martin & St Maarten, the British Virgin Islands, Turks & Caicos Islands and Cayman Islands. The products it sells in those countries include chicken nuggets, hot dogs, burgers and chicken wings under the Best Dressed label.

“I think that the opportunities that we see for exports into the region are encouraging. A lot, as I mentioned, is around the logistics, getting to some of these islands is a little bit more difficult than one may think, but the reception of the products in the markets in which we operate has been very, very encouraging. We’ve seen repeat sales all the time, we’re able to offer a suite of products which works well to supermarkets and food services,” said JBG group president and Chief Executive Officer (CEO) Christopher Levy at the company’s virtual 65th annual general meeting on Wednesday.

Its Jamaican operations saw revenue jumped 30 per cent to $58.82 billion with its segment result rising 56 per cent to $7.57 billion in its 2023 financial year (FY). JBG’s overall consolidated sales topped $91.37 billion with net profit attributable to shareholders of $4.45 billion which was due to higher volume growth in Jamaica and the USA.

JBG is also making waves in the USA where its sales increased 11 per cent to $32.55 billion and segment result moved 55 per cent to $3.79 billion for the 2023 financial year. It was the company’s best performing year on record.

The company recently opened its expanded chicken processing plant in South Carolina which cost US$25- $30 million and was financed largely with debt. Levy noted that the new plant was very efficient, flexible and that the quality coming out of the plant is amazing. Although the plant was at 85-90 per cent capacity prior to the expansion, the JBG CEO expects the expansion will feed into stronger sales on the US east coast where its brand is gaining traction.

“I do feel that the additional capacity will be used up in short order, but the plant has been in operation for six months. So, I think that it’s quite exciting in terms of how we have been able to get that volume up through the plant so quickly. The expansion was really about doubling the capacity of what we actually bought. So, it was a significant step,” Levy added on the plant which was acquired in September 2019.

When asked about further opportunities which can arise from the USA and regional efforts, Levy responded, “The US is a very dynamic and efficient market, it does not allow for mistakes, and I think without a doubt, the team up there understands that, and we will take it a step at a time. As far as we look at it, there are opportunities that will arise, and we will evaluate them as time allows.”

Jamaica Broilers exited the Haiti market in October 2022 following its entry after the January 2010 earthquake. This resulted in the company incurring a loss of $1.04 billion on the disposal of the operations and impairment provisions of $1.0445 billion in its 2023 financials. Haiti was a market that generated $2.40 billion in sales, a segment result of $170.98 million and net profit of $29.13 million in the 2019 FY. While the company has no more financial exposure to the French-speaking country, it still sells its Hi-Pro feeds in Haiti.

“We’re doing well. The quick service restaurants have bounced back pretty well from COVID, our primary one being Kentucky Fried Chicken. We’ve seen growth in quite a few other establishments, and I think that they’re going to continue to do well especially coming into Christmas and through this year. I think we’ve seen them get back to pre-COVID levels in terms of sales and that always works well for us,” Levy added.

JBG’s first quarter saw consolidated revenue rise to $23.39 billion with net profit coming in 15 per cent higher at $1.24 billion. This translated to its trailing twelve months earnings per share jumping to $4.60.

Total assets rose to $78.79 billion with inventories and biological assets at $19.80 billion and $21.56 billion, respectively. Total liabilities and shareholders equity closed July at $52 billion and $26.80 billion, respectively.

JBG’s share price is up seven per cent year to date at $33.22 which leaves it with a market capitalisation of $39.84 billion. The price to earnings ratio is 7.22 times. Shareholders are set to receive a $0.44 dividend totalling $527.68 billion on November 9 for those who were on record as of October 28.