An increase in the sale and consumption of poultry products locally has fattened revenues for Jamaica Boilers Group (JBG) resulting in top-line growth above seven per cent at the end of its first quarter ended July 31.
"Total revenue for our Jamaica operations showed an increase of seven per cent over the quarter ended April 30, 2022. This increase was primarily driven by increased production and sale of poultry, as well as increased sale of baby chicks to our small farmers," the company's directors said in a recent interim report to shareholders.
Just last month, following a series of price increases, owing to improvements in global market conditions, JBG announced that in order to ease the burden on its consumers, the company would cut prices for some of its chicken products by up to $12.50 per kilogramme. This, they said, was as a result of increased stability in the grain market, a stabilisation of the foreign exchange rate and noticeable reductions in containerised shipping costs.
"The reopening of the Jamaica economy, particularly the tourism industry, has contributed to the increased demand driving sales," the report added.
The Planning Institute of Jamaica (PIOJ), in its latest preliminary data on gross domestic product output during the April-June quarter of this year, had estimated real value added for the hotel and restaurant sector has grown by over 55 per cent as a result of sharp increases in visitor arrivals to the island. The entity, during a briefing held last month, further said that already airport arrivals were reflecting increased figures — up by 33 per cent or about 245,102 people up to July.
At the end of the first quarter total revenues for the group, which also has operations in the United States and Haiti, amounted to $23 billion, 12 per cent above the $20.6 billion earned in the preceding year's quarter. This translated into total net profits of $1.1 billion.
A breakdown of the quarter's performance shows local operations driving the bulk of the revenues for the group, earning almost $14 billion, while its US operation delivered $9.2 billion of the total amount. Increased production and sales in The Best Dressed Chicken line of products, as well as increased feed sales in the US market were also outlined as the primary driver of revenue growth in that segment, up 22 per cent above that of the previous year's corresponding quarter.
The struggling Haitian operation which continues to be impacted by political and economic turmoil taking place in that country returned only $85.6 million in revenues.
"Total revenues were reduced by 61 per cent as a result of the continued downsizing exercise. Operations in Haiti are being reviewed and evaluated to determine the future viability of the business, amid the country's economic and political instability," the directors, led by Chairman Robert Levy and President and Chief Executive Officer Christopher Levy noted.
Total assets at the end of the first three months stood at $63 billion while earnings per shares climbed to $1.07 when compared to the corresponding period last year.