Jamaica Broilers increases its stake in Haitian subsidiary; acquiring an additional 13.84% equity
Loss-making foreign subsidiary cuts its deficit by 75% during the last three quartersSunday, March 07, 2021
BY DURRANT PATE
Jamaica Broilers Group is exhibiting much faith in its Haitian subsidiary, which has been the most tumultuous of all its business segments, by increasing its equity interest through the acquisition of a further 13.84 per cent stake in the company.
This was done effective November 1, 2020, which saw Jamaica Broilers Group ownership in the Haiti Broilers SA increasing to 85.48 per cent. For the nine months ended January 30, 2021, the Haitian operations reported a segment loss of $23.3 million compared to a prior year loss of $92.4 million, an improvement of 75 per cent.
The news was also good on the revenue side, where total revenue for the period under review increased by 26 per cent. The Haitian operations has been a drag on the company chalking up losses quarter over quarter for at least the past one and a half year.
For the nine-month period, the group's operations produced a profit before tax of $2.5 billion, representing an increase of 66 per cent over the prior year. Profits attributable to stockholders came out at $1.8 billion.
Group revenues for the nine months amounted to $41.3 billion, which two per cent above the prior year while gross profit for the nine months was $10.3 billion, three per cent above the prior year. The Jamaica operations reported a segment result of $3.1 billion, which was $694 million or 29 per cent above last year's segment result of $2.4 billion.
JAMAICAN SEGMENT HIT BY COVID-19 BUT STILL RECORDed A 29% IMPROVEMENT
The management reported that the novel coronavirus pandemic has adversely impacted the Jamaica operations revenue, which declined by four per cent. In spite of the adverse impact of the pandemic, the Jamaica operations was able to record a commendable 29 per cent improvement over the prior year, as a result of improving efficiencies and the continued enhancing of customer relationships.
As it regard the American operations, this business segment reported a 10 per cent increase to $1.1 billion. Total revenue increased by nine per cent over the prior year driven by increased poultry and feed sales.
The Best Dressed Chicken line of products continue to surpass expectations and has been well received in the market. Finance costs for the group showed a reduction of $251 million compared to last year, resulting from increased foreign exchange gains mainly from the significant currency revaluation in its Haiti operations.
DIVERSIFICATION STRATEGY YIELDING RESULTS
The management team advised that, “the implementation of the group's diversification strategy has yielded positive results, including the strengthening of our various markets as economies continue to open. We are steadfastly praying for the well-being of all our stakeholders and remain committed to ensuring a continuous supply of our quality products to our customers.”
Total assets amounted to $47.08 billion as at January 31, 2021 relative to $39.92 billion a year prior. The increase in total assets was due mainly an increase in 'Biological Assets' and 'Inventories' which rose 32 per cent and 39 per cent, respectively.
'Biological Assets' and 'Inventories' as at January 31 2021 amounted to $9.68 billion up from the $7.34 billion posted in 2020 and $11.53 billion, up from 2020, when the company posted $8.30 billion.
Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at https://bit.ly/epaper-login