Jamaica Broilers (JBG) recently released full year results to April, with a big jump in earnings, from ongoing operations following the write off of $1 billion relating to the closure of the Haitian operations, with group revenues rising 23 percent from continuing operations and profit after tax rising a solid 56 percent to $5.4 billion from $3.44 billion in 2022.
Jamaica Broilers announced a new acquisition last week
Profit after tax rose a solid 39 percent to $4.3 billion from $3 billion in 2022 after factoring in the above one time write off of the Haitian operation.
Segment results. The group has two main operating segments split between Jamaica and The USA, with results showing revenues in the Jamaican operations jumping 30 percent to $59 billion from $45 billion and the USA climbing 11 percent from $29 billion to $32.5 billion. The Jamaican segment delivered profit of $7.57 billion, up a significant 56 percent from $4.8 billion in 2022, with the USA market delivering $3.8 billion, up a robust 55 percent, compared with $2.45 billion in 2022.
A sharp rebound in the local economy buoyed by a strong recovery in the tourism sector over last year would have contributed a significant part of the local rebound. However, reports are that the company’s main competitor, Caribbean Broilers, had challenges during the period that saw JBG filling the gap and therefore enjoying above average growth and, if correct, could revert to lower levels in the new fiscal year.
Earnings per share reported by the audited results came in at $4.43, after the write off of the Haitian operations, excluding the write off, earnings were a much more attractive $5.35 per share, with just over $7 projected by ICInsider.com for the current year, making it a compelling buy at current prices. The PE is an appealing 6.5 times last fiscal year’s earnings from ongoing operation and just 5 times this year’s earnings at the last traded price of $35 on the Jamaica Stock Exchange. The stock price has a premium of 66 percent over the Net asset value of $21.43 to Friday’s stock price, with the manufacturing sector at 100 percent, which suggest the extent of a potential rise.
Profit margin rose from 24 percent in 2022 to 26 percent in 2023, increasing gross profit by 30 percent to $23.4 billion from $18 billion in 2022.
Christopher Levy – Jamaica Broilers President and Chief Executive.
Administrative and other expenses rose 9.6 percent, well below the gains in gross profit to $12.4 billion and distribution expenses increased by 17.3 percent to $2.67 billion. Finance cost jumped a sharp 70 percent to $1.85 billion from $1.1 billion. In comparison, finance income swung around by $670 million from $593 million that, mainly was debt forgiveness in 2022, to a loss of $177 million, representing loss on foreign exchange but other income comprising a potpourri of items, some of which may be nonrecurring, moved from $393 million in 2022 to $439 million. Taxation rose 35 percent from $1 billion to $1.37 billion.
The operations generated $9 billion in gross cash flow, up from $6 billion in 2022, that ended at $1.4 billion after working capital needs, compared with $2.2 billion in 2022, as inventories of finished goods and livestock consumed all of the funds generated. The group paid $783 million in dividends net of tax from $463 million in 2022, including $503 million or 42 cents per share paid in March this year and 36 cents or $432 million in November 2022. The payout amounts to 17.6 percent of reported profit, below the expected 20 percent the company indicated it would pay in the past.
The group incurred $8.3 billion in the acquisition of fixed assets well up on the $2.9 billion in 2022 and borrowed $11 billion net of repayment to fund the purchases. Current assets ended the period at $50.7 billion, up from $40 billion in 2022. Receivables amounted to $6 billion, inventories rose to $18.8 billion from $15.6 billion in 2022, farm animals were valued at $21 billion, up from $15 billion in 2022 and cash and bank balances stood at $4.8 billion, up from $3.9 billion. Current liabilities ended the year at $34 million compared with $27 billion the year before. Net current assets ended the period at $16.5 billion versus $13 billion in 2022.
At the end of April, shareholders’ equity amounts to $25.3 billion, with 2022 ending with $21 billion. Long term borrowings ended at $16 billion and short term at $17 billion, up from $10.3 billion and $13.6 billion, respectively, in 2022.
The stock gets an ICInsider.com BUYRATED seal of approval, but investors need to note a few things. Capital spend is impressive and bodes well for continued growth, however, the company is primarily involved in the agricultural business, that can be fickle and several factors could play a role in derailing its fortunes.
Investors traded 364,898 shares for $3,961,337 versus 10,104,029 stock units at $50,843,921 on Thursday.
Calypso Macro Investment Fund ended at $21.50 with an exchange of 62 units, CinemaOne popped 5 cents to end at $7.30, with 350 stocks crossing the market. Endeavour Holdings ended at $13 after trading 77 shares, First Citizens Group ended at $49 after investors traded 206 units, FirstCaribbean International Bank ended at $7.05 in owners switching 46,569 stocks, GraceKennedy closed at $3.43 after an exchange of 60,253 stock units. Guardian Holdings rallied 35 cents in closing at $19 after shareholders finished trading 12,565 stock units, JMMB Group rose 4 cents to $1.39, with stakeholders exchanging 9,152 stocks, Massy Holdings ended at $4.98 after 13,938 shares passed through the market, National Enterprises remained at $4.14, with 17,235 units clearing the market. 
National Flour Mills dipped 4 cents to $1.60 with investors trading 386 units, One Caribbean Media ended at $3.83 in an exchange of 103,000 stocks, Point Lisas ended at $3.30 and closed after 38,970 shares changed hands, Prestige Holdings shed 12 cents to end at $7.85 after 10,340 stock units passed through the market. Republic Financial ended at $129 in an exchange of 8,910 shares, Scotiabank ended at $75.50 as investors exchanged 540 stock units, Trinidad & Tobago NGL rose 10 cents to $18 with a transfer of 4,740 units, Trinidad Cement rose 10 cents to close at $2.65 with shareholders swapping 9,651 stocks. Unilever Caribbean dipped 18 cents to $12.01 while exchanging 4,056 units and West Indian Tobacco remained at $11.50 in an exchange of 4,869 stock units.
Investors traded 10,104,029 shares at $50,843,921 in comparison to 844,243 stocks at $4,798,090 on Wednesday.
At the close, Agostini’s ended at $68.50 following an exchange of 1,344 shares, Angostura Holdings lost 30 cents in ending at $23.20 while exchanging 7 units, Ansa McAl advanced 50 cents in closing at $52.50 with stakeholders trading 1,606 stocks. Ansa Merchant Bank remained at $47, 8 stock units with crossing the exchange, Calypso Macro Investment Fund fell 30 cents to close at $21.50 with investors trading 398 units, First Citizens Group ended at $49 in an exchange of 4,989 stock units. GraceKennedy remained at $3.43, with 211,287 stocks clearing the market, Guardian Holdings popped 64 cents to $18.65, with 15,538 shares changing hands, JMMB Group remained at $1.35 as investors exchanged 506,000 units. Massy Holdings ended at $4.98 and closed after 8,848,507 stock units passed through the market, National Enterprises dipped 1 cent to $4.14 with a transfer of 10,000 shares, One Caribbean Media popped 1 cent in closing at $3.83 in switching ownership of 400,741 stocks. 
Point Lisas dipped 5 cents to $3.30 in trading 30,500 units, Prestige Holdings ended at $7.97 as 32,529 shares passed through the market, Republic Financial increased $1.16 to close at $129 after an exchange of 12,865 stocks. Scotiabank shed 10 cents in ending at $75.50 after exchanging 6,645 stock units, Trinidad & Tobago NGL declined 10 cents to end at $17.90 with investors trading 20,938 shares, Unilever Caribbean remained at $12.19 in an exchange of 27 stock units and West Indian Tobacco ended at $11.50, with 100 units crossing the market.
Investors exchanged 844,243 shares for $4,798,090 compared to 431,577 stock units at $732,373 on Tuesday.
Ansa Merchant Bank ended at $47 in an exchange of 1,000 shares, CinemaOne shed 25 cents in closing at $7.25 as investors traded 47 stocks, Endeavour Holdings ended at $13 after 158 units cleared the market. First Citizens Group climbed 89 cents to $49 in switching ownership of 16,627 stocks, FirstCaribbean International Bank ended at $7.05 while exchanging 1,000 shares, GraceKennedy rose 3 cents to $3.43 after 518,532 shares crossed the market. Guardian Holdings popped 1 cent to close at $18.01, with 16,077 units crossing the exchange, L.J. Williams B share ended at $2.80 with a transfer of 5 units, Massy Holdings ended at $4.98 after 75,623 stocks changed hands. National Enterprises added 1 cent to $4.15 in an exchange of 113,691 shares, One Caribbean Media increased 2 cents and ended at $3.82 in trading 82,984 stocks, Point Lisas gained 5 cents to close at $3.35 after a transfer of 600 units. 
Prestige Holdings advanced 7 cents to $7.97, with 405 stock units crossing the market, Republic Financial popped 83 cents to end at $127.84 with an exchange of 2,811 shares, Scotiabank increased 10 cents to $75.60 after 1,136 units passed through the market. Trinidad & Tobago NGL rallied 10 cents to close at $18 with 1,297 stock units changing hands, Trinidad Cement remained at $2.55, with an exchange of 2,274 stocks, Unilever Caribbean rose 19 cents to $12.19 after trading 473 stock units and West Indian Tobacco ended at $11.50, with 3,176 shares changing hands.
Investors exchanged 431,577 shares at $732,373 compared with 107,712 stock units at $3,087,484 on Monday.
FirstCaribbean International Bank ended at $7.05 with shareholders swapping 7,500 units, GraceKennedy dipped 3 cents to $3.40 after 86,068 shares passed through the market. Guardian Holdings shed 65 cents to end at $18, with 2,064 stocks crossing the exchange, Guardian Media ended at $2.20 while exchanging 576 stock units, JMMB Group lost 2 cents to close at $1.35 in swapping 10,887 stock units. L.J. Williams B share ended at $2.80 after a transfer of 10 units, Massy Holdings gained 3 cents to close at $4.98 with an exchange of 9,563 stocks, National Enterprises declined 1 cent in closing at $4.14 with 209,323 shares clearing the market. National Flour Mills popped 4 cents and ended at $1.64 after trading 1,512 units, NCB Financial remained at $3.10 as investors exchanged 24,726 shares, One Caribbean Media fell 1 cent to $3.80 with investors trading 1,843 stock units.
Prestige Holdings declined 8 cents to $7.90 following 40,589 stocks passing through the market, Republic Financial gained 1 cent in closing at $127.01 in an exchange of 5,904 stocks, Scotiabank dropped 20 cents to $75.50, with 783 shares crossing the market. Trinidad & Tobago NGL advanced 36 cents and ended at $17.90, with 14,595 stock units changing hands and Unilever Caribbean dipped 10 cents to close at $12 in trading 12,946 units.
Investors traded 107,712 shares for $732,373 compared with 386,473 stock units at $16,641,347 on Friday.
At the close, the price of Agostini’s added 50 cents and closed at $68.50 after 215 trading shares, Calypso Macro Investment popped 1 cent to $21.80 and closed with 862 stocks changing hands, Endeavour Holdings remained at $13 after an exchange of 984 units, First Citizens Group ended at $48.05 after an exchange of 286 stocks, FirstCaribbean International Bank ended at $7.05 with trading in exchange of 851 stocks, GraceKennedy remained at $3.43 with shareholders swapping 34,376 units, Guardian Holdings climbed 64 cents in closing at $18.65 after 960 stock units passed through the market, JMMB Group shed 1 cent and ended at $1.37, with 138 shares crossing the market, L.J. Williams B share remained at $2.80, with 915 stocks crossing the exchange, Massy Holdings ended at $4.95, with 26,019 units clearing the market,
National Enterprises gained 15 cents to end at $4.15 after a transfer of 95 stock units, National Flour Mills dropped 3 cents to end at $1.60 with a transfer of 142 shares, NCB Financial remained at $3.10 after an exchange of 6,052 stocks, One Caribbean Media ended at $3.81, with 25,894 shares changing hands, Prestige Holdings fell 2 cents to $7.98 in an exchange of 1,266 units, Republic Financial lost $2 in closing at $127 with investors transferring 456 stock units, Scotiabank ended at $75.70 after stakeholders exchanged 1,603 units, Trinidad & Tobago NGL declined 41 cents to $17.54 in switching ownership of 2,275 shares, Trinidad Cement dipped 10 cents to $2.55 while exchanging 100 stocks, Unilever Caribbean lost 14 cents to close at $12.10 in an exchange of 3,168 stock units and West Indian Tobacco rose 25 cents to $11.50 after trading 1,055 units.
Investors exchanged 386,473 shares for $16,641,347 versus 171,202 stock units at $2,189,051 on Thursday.
First Citizens Group remained at $48.05 after 1,662 stocks crossed the market, FirstCaribbean International Bank shed 20 cents at $7.05, with 6,422 stocks changing hands. GraceKennedy closed at $3.43 after an exchange of 11,465 units, Guardian Holdings advanced 1 cent to $18.01 in switching ownership of 500 shares, Guardian Media ended at $2.20 and closed after 5,730 stock units were traded. JMMB Group popped 3 cents and ended at $1.38 in trading 31,372 units, Massy Holdings gained 5 cents to end at $4.95 with a transfer of 9,200 stocks, National Enterprises remained at $4, with 500 shares crossing the market. NCB Financial remained at $3.10, with 1,000 units clearing the market, One Caribbean Media ended at $3.81 with an exchange of 500 stock units, Prestige Holdings ended at $8 after a transfer of 729 stocks. 
Republic Financial popped $2 to end at $129 in an exchange of 115,294 stock units, Scotiabank declined 25 cents to close at $75.70 with shareholders swapping 231 shares, Trinidad & Tobago NGL rose 5 cents to $17.95 after investors traded 62,518 stocks. Trinidad Cement increased 10 cents to close at $2.65 as investors exchanged 138,301 units, Unilever Caribbean climbed 21 cents to $12.24 after 851 shares changed hands and West Indian Tobacco remained at $11.25, with 145 stocks crossing the exchange.
Investors traded 171,202 shares for $2,189,051 versus 342,162 stock units at $2,112,627 on Wednesday.
Endeavour Holdings climbed 25 cents and ended at $13 after 1,405 shares passed through the market, First Citizens Group ended at $48.05 after trading 1,693 stocks, FirstCaribbean International Bank ended at $7.25 as 65 stock units were traded, GraceKennedy ended at $3.43 after an exchange of 60,311 units. Guardian Holdings shed 65 cents to end at $18, with 1,700 shares crossing the market, JMMB Group closed at $1.35 in switching ownership of 19,015 stock units, Massy Holdings increased 5 cents to end at $4.90 after an exchange of 44,299 stocks, National Enterprises ended at $4, with 7,699 units crossing the exchange. National Flour Mills popped 11 cents to close at $1.63 after 26 stock units changed hands, 
NCB Financial ended at $3.10 in an exchange of 15,800 units, One Caribbean Media advanced 6 cents to $3.81 with a transfer of one stock unit, Prestige Holdings ended at $8, with investors trading 303 shares. Republic Financial dropped 55 cents to close at a 52 weeks’ low of $127, with 10,958 units crossing the market, Scotiabank fell 4 cents to close at $75.95 with investors transferring 5 shares, Trinidad & Tobago NGL ended at $17.90 after a transfer of 4,252 stocks. Trinidad Cement rose 1 cent and ended at $2.55 with shareholders swapping 615 stocks, Unilever Caribbean dropped 22 cents to $12.03 in an exchange of 799 units and West Indian Tobacco remained at $11.25 in trading 1,330 stocks.
Investors traded 342,162 shares for $2,112,627 compared with 225,137 stock units at $3,032,026 on Tuesday.
At the close, Ansa McAl popped 1 cent to $51.01 after 35 shares passed through the market, Calypso Macro Investment Fund dropped 20 cents to end at $21.60 in an exchange of 178 stock units, CinemaOne advanced 50 cents to end at $7.70 with stakeholders exchanging 130 units, Endeavour Holdings dipped 25 cents to close at $12.75 in switching ownership of 78 stocks. First Citizens Group fell 5 cents in ending at $48.05 with an exchange of 1,225 stocks, FirstCaribbean International Bank rallied 5 cents to $7.25 after 84,953 stock units crossed the market, GraceKennedy remained at $3.43 with just one stock clearing the market, L.J. Williams B share ended at $2.80 crossing the exchange 10 shares. Massy Holdings lost 5 cents and ended at $4.85 with shareholders swapping 101,918 shares, National Enterprises popped 7 cents to close at $4 with a transfer of 75,373 stock units, 
National Flour Mills shed 12 cents to close at $1.52 after 788 units were traded. NCB Financial ended at $3.10 with 58,685 stocks being traded, Prestige Holdings closed at $8 after 458 units changed hands, Republic Financial gained 10 cents to end at $127.55 in an exchange of 646 stocks. Scotiabank ended at $75.99, with 1,525 shares changing hands, Trinidad & Tobago NGL declined 30 cents in closing at $17.90, with 10,000 stock units crossing the market and Unilever Caribbean climbed 15 cents to close at $12.25 as investors exchanged 6,159 shares.
Investors exchanged 225,137 shares for $3,032,026 compared to 91,646 stock units at $822,343 on Monday.
At the close, Agostini’s ended at $68.50 after investors traded 14,508 shares, Angostura Holdings gained 30 cents in closing at $23.40, with 21 stocks changing hands, Ansa McAl remained at $51 with a transfer of 300 units, Calypso Macro Investment Fund ended at $21.80 after 22 stocks were traded. CinemaOne dipped 55 cents and ended at $7.20 in an exchange of 50 units, First Citizens Group rose 10 cents and ended at $48.10 in switching ownership of 2,100 stock units, FirstCaribbean International Bank remained at $7.20 as investors exchanged 5 shares, GraceKennedy ended at $3.43 after 64,173 stocks were traded. Guardian Holdings remained at $18.65 in an exchange of 148 units, JMMB Group lost 4 cents in closing at $1.35, with 12,250 stock units crossing the exchange, L.J. Williams B share increased 1 cent to close at $2.80 after exchanging 60 shares, Massy Holdings popped 5 cents in closing at $4.90 after a transfer of 68,416 stocks. 
National Enterprises climbed 7 cents to end at $3.93 with 15,054 stock units crossing the market, National Flour Mills remained at $1.64 while exchanging 541 stocks, NCB Financial fell 46 cents to end at $3.10 after 1,000 shares passed through the market, Prestige Holdings ended at $8, with 16,087 units crossing the market. Republic Financial declined 55 cents to $127.45 with investors trading 2,568 shares, Scotiabank advanced 13 cents to $75.99 with an exchange of 7,327 units, Trinidad & Tobago NGL ended at $18.20 after investors ended trading 5,027 stocks, Unilever Caribbean shed 15 cents in closing at $12.10 with 5,027 stock units clearing the market and West Indian Tobacco dropped 75 cents to $11.25 with stakeholders exchanging 10,453 shares.
