coronavirus

Profit up at Jamaica Broilers

August 30, 2020 by IC Insider.com

Revenues dipped 5 percent at Jamaica Broilers in the July quarter to $12.6 billion from $13.26 billion in the prior year. At the same time, operating profit rose 25 percent to $851 million from $679 million in the preceding year, with profit after taxes rising moderately by 6 percent from $361 million to $383 million.

Jamaica Broilers announced a new acquisition last week

Distribution costs rose to $467 million from $445 million in the 2019 first quarter. A significant fall in administration and other expenses was the main contributor to the improved profit performance by adding $375 million to the results with a decline in cost from $2.28 billion to $1.9 billion while other income added nearly $200 million to the increase as well after gross profit had declined by $377 million to hit $2.95 billion. The fall in gross profit resulted in a gross profit margin slipping to 23.43 percent from 25.07 percent in 2019.
Provision made for corporate taxes doubled from $55 million to $112 million. Other comprehensive income net of taxes rose from $112 million to $246 million resulting from exchange differences in translating foreign operations and resulted in total Comprehensive Income Attributable to Stockholders of the company amounting to $629 million versus $473 million in 2019.
In commenting on the results, Robert Levy, Chairman and Christopher Levy, Group President & CEO, informed shareholders, “We are seeing improved corporate results due to early decision-making, aggressive cost reductions and improved FX positions. There has been a refocussing on the absolute basics to keep the company running profitably due to the challenges brought on by COVID-19. This has translated to a better and deeper foundation for the company.”

Christopher Levy – Jamaica Broilers President and Chief Executive.

Segment results show the Jamaican operation losing $1.38 billion in revenues to end at $7 billion in the July quarter, with segment result of $730 million compared to $764 million in 2019. The US segment kept up well with revenues of $5 billion, an increase of $660 million and segment results of $316 million, down slightly from $334 million in 2019. Haiti delivered $483 million in revenues, moderately down on the $530 million produced in 2019, with segment results of $11.5 million versus $19 million in 2019, while other Caribbean Operations brought in a profit of only $27 million, down sharply from $536 million in 2019.
Cash flow from operating activities netted $860 million, but it fell with a significant reduction in payables of $1.74 billion and the purchase of fixed assets amounting to $840 million. At the close of the quarter, the company utilized $480 million of the funds held at the end of April. There was a major increase in inventories and biological assets to reach $17.7 billion from $13.3 billion in 2019. The company seems to have worked off some of its excess inventory in the quarter, built up resulting from lower demand, following the outbreak of the Coronavirus that stood at $18.6 billion at the end of April. Shareholders’ equity stood at $16.6 billion, with total borrowings at $18.5 billion comprising current portions at $9.5 billion and the long-term amount at $9 million. Current assets ended the period at $27.7 billion inclusive of trade and other receivables of $4.2 billion, cash and bank balances of $5.7 billion. In comparison, current liabilities stood at $17.5 billion, resulting in net current assets of $10 billion.
Earnings per share rose to 41 cents for the quarter. The stock traded at $24 on the Main Market of the Jamaica Stock Exchange. IC Insider.com forecasts earnings of $2.80 per share for the full year to April 2021, putting the PE at 8.6 times 2021 earnings, providing the basis for the stock price to rally higher in the periods ahead.

Filed Under: Company News, Company Results Tagged With: Christopher Levy, coronavirus, Jamaica Broilers, Jamaica Stock Exchange, Jamaican stocks

10 seats to win for PNP

August 24, 2020 by IC Insider.com

Public opinion polls are all out and forecasting a massive victory for the JLP over the PNP, when the votes are tallied on September 3. The polls suggest a range of possible voter support, from 60 percent for the JLP and 40 for the PNP to a high of 68 percent for the JLP and a low of 32 percent for the PNP.
When applied against the 2016 results, the data suggests that the PNP can only rely on getting around 10 seats, with a few others ending up in the marginal column. Even some that appear safe could fall with the massive swing the polls suggest. The swing to the JLP started from around 2014 and started to gather- momentum in 2018 and 2019 as shown by the by-elections results in St Mary and Portland. No doubt, there will be a least one more set of polling data on party standings, that will be released before the start of September that will show if they are any shift in the numbers.
No political party in the history of polling in Jamaica going back to the 1970s has had such a lead in public opinion polls a few weeks from the actual election and none with a lead over 6 percent a year from the elections, has lost. Those are daunting statistics confronting the People National Party as they prepare for the national polls.
The JLP is winning the advertising race by several lengths if advertisements in the newspaper are anything to go by. On Sunday, this week, the JLP had seven full page advertisements in the Sunday Gleaner to just one for the PNP.

Dr. Peter Phillips – President of the PNP

That is a sign of the lopsidedness of the money one side has over the other. This election, will need the advertising in getting out the message far more than at any other election, based on the restrictions on physical campaigning as a result of the Coronavirus spread.

Political parties will not say publicly that they are going to lose, but the magnitude of loss that the PNP is facing is unlikely to be surprising to its leaders. Such leads, choke off badly needed financial help and demoralize party workers and supporters.
All three public opinion polls that showed the political party standings ahead of the 2020 general elections were mainly done in July and show different positions for the parties. They differ quite markedly with a variance of 8 percentage points between the highest and lowest support for each party.
The margin of error of the polls ranges between 2.5% to 3%. Making adjustments for the error factor, plus or minus, could put them all in reach of each other.

JLP set to win a massive victory in the 2020 elections

The Blue Dot Polls numbers are the most conservative of the lot, with 52% for the JLP and 34% for the PNP. The poll represents persons who say they will or maybe voting. On a head to head basis, it translates to JLP winning 60.5% of the votes to the PNP 39.5%, but it could go as high as JLP 64% PNP 36% or as low as 57 percent to 43 percent. The Johnson Polls show that the JLP would win 68 percent of the popular votes to the PNP’s 32 percent, with the possibility that it could range between a high of 73 percent for the JLP to a low of 63 percent and a high of 37 percent for the PNP to a low of 27 percent. Anderson Polls numbers put the JLP at 64 percent and the PNP at 36 percent, with a high of 70 percent, to a low of 59 percent for the JLP and a high of 41 percent for the PNP and a low of 30 percent.

Filed Under: General News Tagged With: 2020 General Elections, Bill Johnson polls, Blue Dot polls, coronavirus, Don Anderson polls, JLP, PNP

Palace Amusement closes cinemas

March 14, 2020 by IC Insider.com

In the wake of COVID 19 in Jamaica and recent reports of community spread, the management of Palace Amusement Company has taken the decision to close its four cinemas – Carib 5 and Palace Cineplex in Kingston, Sunshine Palace in Portmore and Palace Multiplex in Montego Bay – until further notice.

Carib Cinema, the flagship for Palace Amusement.

This on the heels of increased sanitization measures rolled by the Company this week to help minimize threats to valued patrons and its staff alike.
Marketing Manager, Melanie Graham says that Palace Amusement is now in unchartered territory with the uncertainties of this global pandemic. “We have been watching developments closely and staying tuned to local advisories on the virus since the news of COVID 19 broke earlier this week”, she said. “This has been a challenging week but we have made the difficult decision to close in the best interest of patrons and our employees alike. We will certainly be hard hit on many levels and at this time we are unable to project when we will resume”.
Globally the movie industry is undergoing a sharp downturn due to COVID 19, as producers and film companies continue to pull their pictures.
Among blockbusters which have been rescheduled, are the highly anticipated Fast and Furious 9 now pushed back one year to April 2021, No Time to Die, the new James Bond movie, now set be released in November and Disney’s Mulan and New Mutants which are delayed without any new release dates attached.
The fallout has also hit Alternative Content now shown exclusively at Palace Cineplex, with the Met Opera’s recent announcement of the cancellation of all performances through March 31.
“Palace Amusement wishes to extend heartfelt sympathy to all persons and families affected by COVID 19. We all have to do our part to ensure that we get through this difficult period in the best way possible.” Graham concluded.