Nine months through the fiscal year, profit after tax at Jamaica Broilers Group jumped 64 percent to $1.9 billion, up from $1.1 billion for the similar period to January 2020. The group had a solid third quarter performance registering a 61 percent increase of $287 million over the corresponding period to land at $758 million.
Revenue gains have been small, with a two percent rise to $41 billion for the nine months through January and a three percent rise to $14.7 billion for the third quarter. However, the second quarter enjoyed a seven percent increase in revenue that pushed profit before finance charge up a strong 42 percent at $1.3 billion for the quarter and 35 percent for the nine months at $2.97 billion.
Gross Profit climbed 11 percent to $3.84 billion from $3.45 billion and three percent to $10.28 billion from $9.94 billion in 2020. Gross Profit margin increased to 26 percent in the 2021 quarter from 24 percent in 2020 and remained at 25 percent for the nine months period.
Other Income rose from $81 million in the 2020 January quarter to $225 million and from $184 Million to $453 million for the nine months period.
Distribution Costs fell 14 percent in the third quarter to $601 million from $696 million in 2020 and by 6 percent to $1.7 billion for the nine months period from $1.8 billion in 2020.
Administrative Expenses rose 13 percent to $2.19 billion from $1.94 billion for the latest quarter and fell modestly for the nine months to $6.07 billion from 6.12 billion in 2020. Finance cost climbed 37 percent to $330 million from $240 million in the 2020 January quarter and dropped 33 percent for the nine months to $509 million, from $758 million in 2020.
Segment profits rose in the Jamaica operations by a convincing 29 percent, from a four percent fall in sales for the nine months largely driven by the first quarter performance with a 24 percent increase.
Jamaica Broilers announced a new acquisition last week
Sales in the USA market was up nine percent in Jamaican dollars with profit rising by 10 percent. Haiti continues to operate at a loss, but the group has managed to reduce the loss by 75 percent to just $23 million, with sales improving by 26 percent for the nine month period to $1.7 billion.
The group has been enjoying geometric growth as well as by using cheap debt in financing acquisitions of new businesses, helping to grow profits.
The business brought in gross cash inflows of $3.7 billion, up from $2.3 billion in 2020, $2.15 billion was spent on investing activities versus $2.46 billion in 2020, mainly due to acquisition of property, plant and equipment and ended with cash and equivalent of $3.4 billion up marginally from $3.37 billion in 2020. Borrowings of $20.7 billion as of the end of January 2021, while Shareholders equity stood at $17.9 billion, up from just under $16 billion at the corresponding point in 2020.
Listed among IC.Insider.com’s Top 15 for 2021 and remains on the TOP 10 list. Earnings per share closed out the quarter at 74 cents and $1.77 for the nine months. IC.Insider.com projects earnings per share of $3 for the year ending April and $4 for fiscal 2022. Jamaica Broilers last traded at $31 on Monday with a PE of 10 based on 2021 earnings and 7.4 times 2022 EPS.
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