Jamaica Broilers Group records $400m Q3 profit

With gross turnover of J$6.2 billion, the Jamaica Broilers Group, producers of animal protein products and feeds, has reported net profits of J$400 million, representing a 10 per cent increase for its third quarter ending January 28.



Is performance for the three- month period was influenced by a one- off reversal of corporation tax accruals totalling J$100 million, Jamaica Broilers said in a market filing.



The reversal, it said, was the result of a recent approval for an extension to the company's farmer status, given an expansion in its poultry breeder flock operations in St Ann.



But with increased expenses, Jamaica Broilers, now in an expansionary mode to Haiti, saw a marginal drop in operating profits for the reporting period.



For the quarter operating profit totalled J$515 million, down J$11 million from the J$526 million recorded for the same period last year.



Distribution costs rose by 6 per cent to J$159 million, up from $149.9 million during the corresponding quarter last year.



Administrative and other expenses were up 8 per cent to $686.6 million from $635.7 million.



Financing costs, however, declined quarter-over-quarter to J$93 million compared to $101 million during the corresponding quarter last year.



The group attributed the decline in finance costs to negotiated reductions in interest rates.



A listed company on the Jamaica Stock Exchange since 1992, Jamaica Broilers Group operates from seven locations islandwide, with two outlets in the United States.



With last month’s foray into Haiti producing feed and baby chicks, the company said it is now in a position to make a big impact on a larger Caribbean market.



Jamaica Broilers Group last traded at J$4.88 on the JSE, with its more than one billion ordinary shares value at J$5.9 billion.



The company's latest venture includes a partnership with Wisynco to invest in a new financial and investment house, BCW Capital.



BCW Capital is expected to commence operations during the second quarter of this calendar year, subject to it receiving the requisite regulatory approvals.



sabrina.gordon@gleanerjm.com