Profit looking up at Broilers

Jamaica-BroilersEthanolPlant280x150Jamaica Broilers recorded profits of $406 million for the quarter to January 2015, a 115 percent increase against the $188 million in 2014. Results for the third quarter was better than the amount earned in the first two quarters of the fiscal year combined.
Profit of $622 million was earned for the nine months, 21 percent above the $512 million for the 2014 period. Earnings per stock amounted 33.8 cents for the quarter, up from 15.7 cents for the corresponding period in 2014 and 51.86 cents per stock unit versus 42.71 cents, for the nine months period. IC Insider is forecasting $1 per share earnings for the year to April and $1.50 for the next fiscal year. If the forecast is met, the stock would be selling at at PE ratio of only 4.
The group should benefit from lower cost of inputs for feed, energy and fuel cost with the decline in the price of oil. Contributing to the gains so far, is the Group’s revenue increase of 15 percent for the quarter to hit $9 billion from the $7.8 billion in the corresponding period last year. Gross profit jumped 38 percent in the quarter to $2.2 billion, $600 million above the $1.60 billion of the corresponding quarter of 2014. For the nine months, gross profit came in at $5.7 billion versus $4.4 billion, an increase of 29 percent. It was the improvement in Gross profit margin that contributed most to the improvements in profit with $370 million for the quarter coming from the increased margin.
JB 1-15“In this quarter, the segment reporting was changed to reflect the new geographical perspective on the Group’s operations, being Jamaica, US and Other which includes Haiti,” the company’s management informed shareholders.
Management went on to state that “the growth in the US Operations continues. The segment results reflect the improvement in year to date performance; now at $773 million compared to the year to date of $283 million last year-a 173 percent increase. The Operations in Jamaica have performed as anticipated, given the market environment which has resulted in depressed consumer demand and lower disposable incomes. The year to date segment results at $1.297 billion therefore reflects only a 2 percent increase over the $1.270 billion recorded last year. Revenues from the fuel terminal operations at Port Esquivel were booked in this quarter in respect of a short-term contractual arrangement. A long-term agreement is being negotiated and prospects look good due to the current shortage of storage capacity for petroleum products. In this quarter, the segment reporting was changed to reflect the new geographical perspective on the Group’s operations, being Jamaica, US and Other (which includes Haiti). Distribution, selling and administrative costs, quarter -over –quarter, essentially reflect inflation increases along with costs related to organizational strengthening and increased activities in the US Operations.”
Borrowed funds increased to $6.9 billion and cash funds also increased to $1.76 billion, while equity stands at $11.3 billion.

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  1. […] 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. […]

  2. […] with only 15 securities being active at 10.45 am but the indices have so far climbed quite a bit. Jamaica Broilers trades at new 52 weeks’ high of $8. Traded volume of 1,206,561 units as 6 stocks gained and 5 […]

  3. […] to close at $8, after gaining $1. The D&G stock closed with a bid of $9.20 to buy the stock. Jamaica Broilers closed at $6.50 with 29,188 shares changing ownership while gaining 41 cents, JMMB Group is worth […]

  4. […] The notable trades are Carreras trading at $50.30 with a gain of $1.30 but with only 1,000 shares, Jamaica Broilers with 2,000 units at $6.99 after jumping $1.39. From the junior market, Access made another big leap […]

  5. […] for a 3 cents gain, after trading 10,000 shares, with the stock rising 53 percent since mid-June. Jamaica Broilers had 48,938 shares changing hands at $5.75, National Commercial Bank in trading 2,970 shares, closed […]

  6. […] Gleaner ended with 13,000 shares changing hands to gain 12 cents for a 52 weeks’ high of $1.19, Jamaica Broilers gained 50 cents in trading 7,605 units to end at $6, JMMB Group added 10 cents in trading 219,702 […]

  7. […] hour’s trading on the Jamaica Stock Exchange on Wednesday, the main market indices are down with Jamaica Broilers losing 55 cents to $5.45 and National Commercial Bank trading at $29.01, but the junior market is up […]

  8. […] valued at $109,298,383, with two new closing 52 weeks’ high, in all market segments but with Jamaica Broilers trading at a 52 weeks’ high during the day. TheJSE Market Index gained 661.40 points to […]

  9. […] while trading 37,000 units to close at $7.55, Hardware & Lumber traded 111,500 shares at $18, Jamaica Broilers with 218,900 shares at $5.50, JMMB Group 85,992 shares after slipping 30 cents to $7.50, the Jamaica […]

  10. […] down 7.54 points 108,832.11, the JSE index is at 98,487.69 down by just 6.75 points. In trading, Jamaica Broilers had 20,100 units trading at $5.50, Mayberry Investments has so far traded 100,000 units at $3, […]

  11. […] $92,864,773, in all market segments. Only three new highs were recorded in the overall market, with Jamaica Broilers ended at $5.49 and Jamaica Stock Exchange at $3.55 as new 52 weeks closing highs in the main market. […]

  12. […] that full year earnings could rise to $1 per share, as such the stock has much more room to run. Jamaica Broilers ended with 39,344shares at $4.80, Jamaica Producers gained 50 cents with 12,000 units changing hands […]

  13. […] $6.50 at the close. Grace Kennedy with 19,224 shares that traded closed at 90 cents higher at $63, Jamaica Broilers had 86,530 shares trading to close at $4.70, JMMB Group traded 855,593 ordinary shares for 38 cents […]

  14. […] the losses suffered after investors dumped the stock in March, following hike taxes on cigarettes. Jamaica Broilers traded 269,910 shares at $4.51 and had an offer, to sell 215,000 units at $4.69, Jamaica Producers […]

  15. […] $22.50 and $24.49 while demand is above 363,000 down to $21.50 with more at $21.11 and lower. Jamaica Broilers Group traded 335,165 shares at $4.50 and ended with a bid of $4.30 to buy 112,000 units and an offer of […]

  16. […] trading in the main market are, Carreras closed with 4,200 shares changing hands 95 cents $39.95, Jamaica Broilers finishing trading with 2,000 shares changing hands at 20 cents to $4.50, National Commercial Bank […]

  17. […] the Jamaica Stock Exchange about each trade that took place in 2015 recently. Connected parties at Jamaica Broilers sold a total of 10,236,510 shares on January 28 and February 12. Sagicor Group had a senior manager […]

  18. […] in the main market are, Gleaner closing with 50,000 units and added 5 cents to end at 95 cents. Jamaica Broilers concluding trading with 2,351 shares changing hands, gained 25 cents to $4.30, Pan Jamaican […]