Jamaica Broilers posts increased revenues
The Jamaica Broilers Group has posted a $1.5 billion increase in revenues for the first six months of its financial year ended October 31, 2015, closing the period at $18.1 billion over the $16.6 million reported during the corresponding period last year.
Net profits grew more than 300 per cent to $720 million compared to $210 million the previous year.
For the quarter to October, the group recorded $9.17 billion in revenues, a six per cent increase over the $8.68 billion reported during the corresponding period last year.
Gross profits for the quarter grew by $530 million from $1.75 billion during the same period last year to $2.28 billion, Jamaica Broilers said in its financial report to shareholders.
The group's United States operations "performed as expected with respect to the sale of our main product - fertile eggs for the broiler industry", said the report, over the signatures of Chairman Robert Levy and President and Chief Executive Officer Christopher Levy.
The year-to-date segment results amounted to $538 million, Jamaica Broilers said.
"Our presence in the markets remain strong with a broad customer base, and we are seeing the benefits of the US dollar hard currency earnings. We expect steady growth in other product lines in this segment," the report said.
Jamaica Broilers said its local operations "continue to recover from the challenges of the prior year's quarter, which was impacted by market constraints and sluggish consumer demand.
"We are recording increased sale volumes in poultry and feed products, consequent on targeted marketing strategies. In addition, we continue to focus on cost containment and improvements in the production processes for poultry and feed," said the financial report.
In the other Caribbean operations, Haiti Broilers SA has increased production and sale of table eggs to 14 per cent of the market, compared to 12 per cent at the end of the second quarter last year.
Jamaica Broilers said the positive effect of that volume growth has, however, been neutralized by significant increases in operating costs due to the continuing depreciation of the Haitian Gourde against the US dollar.
Distribution, selling, and administrative costs, quarter-over-quarter, essentially reflect inflation increases and the effect of the depreciation of the Jamaica dollar against the US dollar.
"Against this background, we recorded net profits attributable to stockholders amounting to $409 million, which equates to earnings per stock unit of 33.81cents," said the report.