Jamaica Broilers stock traded at $8 for a gain of 98 percent this year to date, partially spurred by 191 percent jump in after tax profit for the July quarter, to $331 million from $114 million in 2014.
Revenues for the quarter climbed 13 percent to $9 billion which, compared to the $7.8 billion in 2014. Earnings per stock amounts to 27.58 cents against 9.47 cents in the corresponding period last year.
Gross profit grew much faster than revenues at 32 percent to $2.28 billion over the corresponding quarter last year and gross profit margin rose to 25.54 percent from 21.88 percent in 2014. The fall in world market prices for energy and corn along with the closure of the ethanol operation would have contributed to some of the reduction in direct cost. Distribution and selling cost climbed to $248 million from $226 million and administration and other expenses rose by 17.5 percent to $1.5 billion.
Free cash flow from operations generated $851 million leading to cash and investments of $1.8 billion at the end of the quarter, down from $2.3 billion in 2014 as the company repaid just over $300 million in loans and $545 million in payables while receivables growth consumes $380 million, year over year.
Segment results show the Jamaican operations enjoying a marked improvement over 2014 with segment profit of $697 million in the 2015 July quarter, from $448 million reported last year. “We are recording increased sale volumes in poultry and feed products. In addition our focus on cost containment and improvements in the production processes for poultry and feed are bearing fruit,” the company said in its report to shareholders. The US segment show 31 percent sales growth to $2.07 billion from $1.58 billion in 2014 but slightly lower segment profit of $266 million versus $271 million while the Haitian operation performed below that of the prior year period.
The company stated that “Operations are now at an optimal level with respect to the sale of our main product –fertile eggs for the broiler industry. We expect steady growth in other product lines in this segment. In the Other Caribbean Operations, Haiti Broilers SA has increased production and sale of table eggs to 13 percent of the market, compared to 8 percent at the end of the first quarter last year. The positive effect of this volume growth has however been neutralized by significant increases in operating costs due to the depreciation of the Haitian Gourde against the US dollars during this quarter. Our move into sustained profitability in Haiti has therefore been delayed. This segment was also impacted by impairment and mark- to- market adjustments, amounting to $44 million, on certain financial assets in two of our St. Lucian subsidiaries”.
Jamaica Broilers should end up with earnings in the region of $1.30 for the 2016 fiscal year ending April compared with 86.4 cents for 2015. The PE for the stock is just over 6 at the current price of $8. The company declared the payment of an interim dividend of 10 cents per share, payable on November 13. In May this year a payment of 9 cents per share was paid.
191% profit surge for Jamaica Broilers
Forex trading volumes fall back – Friday
Inflows of foreign currency into the forex market fell to normal at this time of the year on Friday, but the Jamaican dollar held ground against the US dollar and gained versus the pound. The equivalent of US$28,906,392 was bought by dealers, compared with US$63,879,976 on Thursday, while they sold the equivalent of US$23,735,150 versus US$60,651,066 previously.
In US dollar trading , dealers bought US$25,241,490 compared to US$61,389,986 on Thursday. The buying rate for the US dollar fell 37 cents to $118.94 and US$22,798,959 was sold versus US$58,673,239 on Thursday, the selling rate remained unchanged at $119.59. The Canadian dollar buying rate rose 3 cents to end at $89.30 with dealers buying C$923,140 and selling C$599,587, at an average rate that rose 26 cents to $92.26. The rate for buying the British Pound climbed 67 cents to $181.65 for the purchase of £1,856,083, while £251,805 was sold, at an average rate that declined $2.20 to $181.50. At the end of trading, it took J$136.18 to purchase the Euro, with a fall of 55 cents from Thursday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$133.82 for a fall of 5 cents on Thursday’s rate. The US dollar equivalent of other currencies traded, amounts to US$137,268 being bought, while US91,463 was sold.
Highs & Lows| The highest and lowest buying rates for the US dollar ended unchanged at $119.90 and $98.11 respectively, but the highest selling rate ended 6 cents higher at $125.78 and lowest selling rate dropped sharply by $9.17 to $88.95. The highest buying rate for the Canadian dollar rose 24 cents to $93.74, the lowest buying rate climbed 96 cents to $73.75, the highest selling rate added 22 cents to end at $94.83 and the lowest selling rate jumped 50 cents to $88. The highest buying rate for the British Pound, declined 35 cents to end at $184.50. The lowest buying rate rose 42 cents to $148.74, the highest selling rate rose 12 cents to $189.06 and the lowest selling rate closed $2.32 higher to end at $176.50.
3 stocks traded higher on TTSE
Activity on the Trinidad & Tobago Stock Exchange on Friday ended with only 8 securities trading. At the close, there were 3 stocks closing higher, none declined and 5 remained unchanged as a total of 326,724 units traded, valued at $4,236,310.
At the close the Composite Index ending with a rise of 0.05 points at 1,146.58, the All T&T Index fell 0.05 to 1,946.25 and the Cross Listed Index is up 0,01 point to 45.52.
gains| Clico Investment Fund closed with just 91,085 shares valued at $2,050,323 changing hands 1 cent higher to end at $22.51, Guardian Holdings with 2,733 shares trading, closed at $13.13 after gaining 1 cent and Scotia Investments ended with 179,973 shares trading with a 1 cent gain to end at $1.61. the stock that has been in good demand in Trinidad with buying at $1.60 may have be close to fully being satisfied with today’s trade as the stock was offered at $1.61 at the close with a bid at $1,50 with 25,405 shares.
Firm Trades| ANSA McAL contributed 300 shares in trading, to close at $67.03, First Citizens Bank traded 50,833 shares valued at $1,779,155 and closed at $35, Massy Holdings traded 200 shares with the price ending at $62.46, Republic Bank closed with 400 shares trading for $112 and Trinidad Cement traded 1,200 units at $3.16.
IC bid-offer Indicator| At the end of trading the Investor’s Choice bid-offer indicator had 3 stocks with the bid higher than the last selling price and 4 stocks with offers that were lower.
The JSE up strongly on Friday morning
The Jamaica stock market for the second consecutive morning, is enjoying slow trading with only 15 securities being active at 10.45 ,but the indices have so far climbed quite a bit with all main market indices up by more than 1,000 points. Jamaica Broilers trades at new 52 weeks’ high of $8. Trading accounted for a volume of 1,206,561 units with 6 stocks gaining and 5 declined.
In trading, Carreras exchanged 109,500 shares at $51.99 to gain 19 cents, Jamaica Stock Exchange had 10,000 shares trading at $8.60 for a rise of 65 cents as the company stands to see increased income if trading continues to be bullish. JMMB Group exchanged 35,096 shares at $8.55 for a small gain, Scotia Investments had 420,000 units changing hands at $27.50, Caribbean Producers traded at $3 with 65,000 shares. Lasco Distributors 109500 shares traded at $2.79, Lasco Financial Services 105,000 shares traded at $2.25, Lasco Manufacturing 198,172 shares traded at $3.50.
The All Jamaican Composite index jumped 1,124.16 points to 132,131.96 JSE Market Index rose 1,005.91 points to 123,570.27, the JSE combined index rose 1,281.46 points to be at 123,840.64 and the junior market index rose 37.15 points to 1,269.32.
Knutsford doubles profit
Knutsford Express more than doubled its profit for the first quarter to August, with a jump of 109 percent to $35.7 million, from $17 million in 2014 and revenues that climbed 38.5 percent to $143 million. The increased revenue “was due to growth in passenger travel” the company stated in its report to shareholders.
Administrative and general operating expenses grew by a much slower 23 percent to $104 million than revenue. Depreciation climbed from $5.4 million to $7.55 million and finance amounts to $3.9 million and is up from $2.3 million in 2014.
Unfortunately the company has not provided information on the composition of administrative and general operating expenses. Based on the last audited financials, the largest cost items are fuel, accounting for around 19 percent of cost, labour for 34 percent and repairs around 10 percent for a total of 43 percent or thereabout.
Earnings per share is 36 cents for the 2015 quarter, putting full year earnings in the $1.60 region.
The company provides a popular coach bus service that plies between Kingston and the North and South coasts of Jamaica. Service was extended to Port Antonio from Ocho Rios earlier in 2015 but will take time to build as more persons become familiar with it. Going forward it is unsure what the opening of the highway to Ocho Rios from Kingston will mean for growth. What is sure it will take less time to cover the route with less operating cost per trip and will allow them to better compete with air travel as the time factor to and from Montego Bay and Kingston will be reduced.
The stock is listed on the junior market of the Jamaica Stock Exchange and has been trading around $6.10, for some time. These results should give the price a lift as the value is very low compared to others on the market, but management needs to improve on the inadequate manner of reporting the results, if not investors will be skeptical about the financial performance and shy away from the stock.
At the end of the quarter, shareholders equity stands at $250 million and liabilities of just $91 million and current assets of $157 million which includes cash and investments of $79 million and other assets of $61 million that rose from $21 million in May this year.
The company paid a dividend of 15 cents per share on September 15.
Trading volumes jump Thursday
Inflows of foreign currency into the forex market jumped sharply on Thursday, but the Jamaican dollar lost ground against the three major currencies it trades against and led to the equivalent of US$63,879,976 being bought by dealers, compared with US$28,123,813 on Wednesday, while they sold the equivalent of US$60,651,066 versus US$32,663,359 previously.
In US dollar trading , dealers bought US$61,389,986 compared to US$23,950,737 on Wednesday. The buying rate for the US dollar gained 47 cents to $119.31 and US$58,673,239 was sold versus US$31,446,646 on Wednesday, the selling rate gained 3 cents to end at $119.59. The Canadian dollar buying rate fell 83 cents to end at $89.27 with dealers buying C$950,168 and selling C$654,115, at an average rate that rose 76 cents to $92. The rate for buying the British Pound declined 43 cents to $180.98 for the purchase of £1,053,245, while £747,541 was sold, at an average rate that climbed $1.07 to $183.70. At the end of trading, it took J$136.73 to purchase the Euro, with a rise of 85 cents on Wednesday’s rate, according to data from Bank of Jamaica, while dealers purchased the European common currency at J$133.87 for a rise of 61 cents on Wednesday’s rate. The US dollar equivalent of other currencies traded, amounts to US$181,485 being bought, while US$326,383 was sold.
Highs & Lows| The highest buying rate for the US dollar added 10 cents on Thursday to end at $119.90, the lowest buying and lowest selling rates remained unchanged at $98.11 and $98.12 respectively, the highest selling rate ended 33 cents lower at $125.72. The highest buying and the lowest buying rates for the Canadian dollar were unchanged at $93.50 and $72.79, respectively while the highest selling rate added 26 cents to end at $94.61 and the lowest selling rate jumped $1.50 to $86. The highest buying rate for the British Pound, declined 5 cents to end at $184.85. The lowest buying rate rose 87 cents to $148.32, the highest selling rate declined 24 cents to $188.94 and the lowest selling rate closed down $1.82 to end at $174.18.