Jamaica Broilers Group’s Improved Financial Results For October 2018 Quarter Attributed To Increased Poultry Sales And Enhanced Inventory Management
The Directors of Jamaica Broilers Group Limited now release the unaudited financial results for the quarter ended October 27, 2018, which have been prepared in accordance with International Financial Reporting Standards (IFRS).
Group revenues for the quarter amounted to $13.6 billion, an 18% increase over the $11.5 billion achieved in the corresponding quarter of the previous year. Our gross profit for the quarter was $3 billion, a 3% increase over the previous year. Jamaica Operations reported segment result of $1.4 billion, which was $299 million or 28% above last year’s segment result of $1.1 billion. This improvement was attributed to increased poultry sales and enhanced inventory management.
Total revenue for our Jamaica Operations showed an increase of 7%. Total revenue for our US Operations increased by 20% over the prior year driven by increased sales of our main products – fertile eggs and baby chicks, as well as, feed sales from the acquired feed mill. Our US Operations reported a segment result of $666 million, which was a 1% decrease from the prior year’s result of $674 million.
This decrease was primarily attributable to one-off staff cost elements and acquisition costs related to the recent feed mill purchase; these cost elements are not expected to recur.
Haiti Operations has increased their market share of table eggs to 34%, compared to 31% of the market at the end of the second quarter last year. Total revenue for our Haitian Operations increased by 13% over the prior year driven by increased sales of table eggs. The segment result amounted to $85 million, which is $1 million or 1% below last year’s segment result of $86 million. Effective October 2018, Jamaica Broilers Group Limited acquired an additional 4% stake in Haiti Broilers S.A., thereby increasing our holdings to 72%.
The Other Caribbean Operations reported segment results of $1.2 billion an increase of $1 billion over the corresponding quarter of the previous year. The significant increase is mainly due to the net results of the JBGL Stockholders Nominee Limited, driven by the unrealised fair value gains (which are eliminated upon consolidation of the Group) of the shares held. Distribution and administrative costs, reflected an increase of 13% over the previous year due primarily to exchange movements, salary increases, increased staff complement and distribution costs related to the recent acquisition of the feed mill. These results also include the operating expenses of the new hatchery in Pennsylvania and the costs associated with the formation of the Shareholders’ Trust – these costs were not in last year’s comparative results.
Our Group operates in three (3) different countries and due to significant foreign exchange volatility during the second quarter, we incurred foreign exchange losses of $231 million. These exchange losses resulted in a 47% reduction from profits attributable to stockholders for the quarter ended 28 October 2017. We are anticipating relative stability in foreign exchange as we progress towards the end of our financial year ending April 27, 2019.
We recorded profits attributable to stockholders of $230 million or 22.42 cents per stock unit for the quarter. The Staff, Management and the Board of Directors of Jamaica Broilers Group Limited continue to trust in the Lord’s guidance for our company and are grateful for His Blessings and Provision.
President & Chief Executive Officer
Jamaica Broilers Group Limited