Producers’ improving performance

Jamaica Producers HQ in Kingston Jamaica

Jamaica Producers HQ in Kingston Jamaica

Revenues climbed an impressive 30 percent, for Jamaica Producers Group for the June quarter this year over 2013, to $2.39 billion. Net profit attributable to shareholders was $104 million, a 42 percent increase relative to the same period last year.
For the half year to June, net profit attributable to shareholders was $138 million, a 13 percent decline, compared with the similar period in 2013. This year’s performance only had $17 million of gain on sales of fixed assets and investments compared with $105 million in 2013. The 2013 result was negatively affected by $36 million in restructuring cost, there was no such charge this year, resulting in the quality of earnings from ongoing operations being better than in 2013.
Europe| In the 2014 second quarter, the Europe division earned revenues of $1.78 billion and pre-tax profits of $167 million, a 33 percent increase in revenues and 196 percent increase in pre-tax profits relative to the 2013 second quarter. Europe is still facing tough economic conditions, resulting in further monetary easing recently, leading to the Euro slipping sharply in value. This development could negatively affect Producers profit for the rest of the year. The results for 2015 could benefit from the monetary easing as the economy could benefit from the stimuli. The local currency could stay stable for some time thus robbing it of the gains make due to currency slippage in the first half of the year.
JP Tropical Division includes businesses located in the Caribbean that faced particularly challenging production and trading environment that adversely affected margins. The division experienced a loss during the 2014 second quarter of $43 million compared to a profit of $27 million for the same period in the prior year, although revenue grew 25 percent. The loss to JP shareholders is $20 million.
jamaica_producers+Tropicallogo150x150JP Tropical Foods experienced growth in its snack foods product lines, particularly in the USA and UK markets. During the quarter, we launched a new tropical snack brand of plantain and cassava chips for the Dominican Republic market.
Gross profit climbed slower than operating revenues at 24.7 percent in the June quarter to $549 billion but was in line with revenues in the year to date period with gross profit rising 17.8 percent to $977 million.
Subsequent to the quarter the group acquired 11.59 percent more Kingston Wharves shares raising its stake to approximately 42 percent to become an even more dominant shareholder of the company. The rate of return on this latest investment is likely to be around 8 percent, or just slightly better than government of Jamaica current Treasury bill rate. But Producers’ focus would be on the longer term growth prospects that will accrue from the expansion of the port, and the increased business that they expect, especially with the opening of an expanded Panama Canal.
The main activities of the group are juice and food manufacturing, the cultivation, marketing and distribution of fresh produce locally, logistics, land management and the holding of investments.
Finances|At the end of June, the group had debt close to $1.2 billion, that should rise with the acquisition of the Kingston Wharves share purchase, as it was partially funded by borrowed money. Equity stood at $5.9 billion and they had cash funds and investments of $987 million. Current assets to current liability was below norm, at $2 billion to $1.5 billion.
Encouraging results| The results for 2014 so far is encouraging, importantly, Jamaica Producers is adding new products to the existing lines, both in the Caribbean and Europe, this is one of the surest ways of improving profitability as it is less costly to add new lines as much of the overheads cost are already built into the system. This is clearly a stock to be watched.

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  1. […] Producers (JP) sold their headquarters but retained occupancy. Big corporations don’t usually do that. […]

  2. […] 99 cents to $64, Jamaica Broilers had 1,424,572 shares changing hands at $5.67 for a 5 cents gain, Jamaica Producers gained 30 cents to close at $18.80 with 10,000 units changing hands. JMMB Group traded 835,324 units […]

  3. […] 95 cents, Grace Kennedy closed with 5,300 shares changing hands at $62.56 by gaining 36 cents. Jamaica Producers continues to trade in heavy volume, this week and closed the week with 753,915 units trading at $17, […]

  4. […] a gain of $1.05. Grace Kennedy’s price fell 80 cents, while trading 5,801 shares at $62.20, Jamaica Producers had 173,904 units trading at $16.80 for a gain of 84 cents but had 1,569,027 shares on the bid at […]

  5. […] Brokers 7.50% preference share, closed with 250,000 units at $2.02, to record a 2 cents gain, Jamaica Producers Group lost $1.04 in trading only 200 shares and ended at $15.96. Sagicor Group traded 50,268 shares […]

  6. […] Jamaica Producers, Sagicor Group and National Commercial Bank dominated trading on the Jamaica Stock Exchange on Friday with a combined total of 8.45 million shares. Elsewhere, activity on the Exchange, resulted in the prices of 5 stocks rising, 7 declining as 18 securities changed hands, ending in 9,746,193 units trading, valued at $155,262,211, in all market segments. Main Market| At the close the JSE Market Index gained 717.53 points to 85,620.15, the JSE All Jamaican Composite index rose index 802.23 points to close at 94,445.60 and the JSE combined index gained 674.14 points to close at 87,355.58. IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator shows 13 stocks with bids higher than their last selling prices and 3 with offers that were lower. Jamaica Producers traded 5,003,044 shares and lost $1.50 to end at $17 with 5 million units being bought by Stocks and Securities on behalf of clients, the selling broker was Proven Investments. Sagicor Group traded 2,288,352 shares, between $10.45 and $10.50 but closed at $10.50 for a small gain, National Commercial Bank had 1,167,359 units changing hands to close at $25.50. Carreras traded 101,583 units at $43 and suffered a lost $1.05, Scotia Group traded 244,951 shares, between $22 and $22.50 before settling at $22.05 for a loss of 45 cents and Proven Investments finished with 201,102 shares at 18 US cents. Grace Kennedy traded 3,850 shares at $65 for new 52 weeks’ highs and Supreme Ventures with 20,435 traded as high as $2.95, a new intraday 52 weeks’ high but ended down, at the close at $2.31 after shedding 49 cents from Thursday’s last price and Barita Investments suffered a fall of 27 cents to $1.95 for a new 52 weeks low. Proven 8% preference share traded 13,260 units to close at $5.05 after dropping 45 cents. […]

  7. […] 5,000 shares at $60.51. Jamaica Broilers ending with 19,937 shares changing hands to close $4.05, Jamaica Producers finished with 1,000 units trading at $17, Radio Jamaica ended trading with 816 units to close at […]

  8. […] Gleaner had 31,693 units trading at 81 cents, Jamaica Broilers closed with 123,928 units at $4, Jamaica Producers ended with 955 shares changing hands at $17. Proven Investments finished with 9,646 units traded at […]

  9. […] activity on the Jamaica Stock Exchange,saw Pan Jamaican Investment share rising $3.50 and Jamaica Producers gaining $1.170, the largest gains for the day. Trading resulted in the prices of 9 stocks rising and […]

  10. […] with 10,000 shares trading at $4.90, Grace Kennedy ended with 9,100 units trading at $61.50. Jamaica Producers in trading 242 shares closed at $17.50, Kingston Wharves closed with 24,500 units changing hands at […]

  11. […] Money Market Brokers ended trading with 8,531 shares changing hands to close at 55 cents $7.10, Jamaica Producers ended with 12,898 shares with the price rising 1 cent to $17.51, National Commercial Bank had […]

  12. […] 678.07 up 10.65 points, at 11.05 o’clock this morning. The main movers this morning so far are, Jamaica Producers up $1.04 to $17, National Commercial Bank up 30 cents at $18.50 and Scotia Group with a gain of 40 […]

  13. […] Money Market Brokers concluded trading with 4,500 units to close with a gain of 5 cents at $7.05, Jamaica Producers concluded trading with 2,123 units and put on 50 cent down at $16, Sagicor Group closed with 209,069 […]