Strong sales growth doubles Jamaica Broilers earnings
Strong sales growth doubles Jamaica Broilers' earnings
Senior Business Reporter
Jamaica Broilers Group sold more poultry and eggs during its January 2016 third-quarter, which translated to $492.8 million net profit or 22 per cent higher than year-earlier levels.
Earnings from its Jamaica and US operations are up, but other parts of the Caribbean suffered an earnings decline.
Group revenues for the quarter amounted to $9.9 billion or 9.3 per cent more than the corresponding period last year.
For the nine months, profits doubled from $615 million to $1.2 billion as sales growth outpaced increases in production costs and operating expenses. Sales for the nine-month period amounted to $28 billion, compared to $25.6 billion in the prior year.
The Jamaica operations recorded increased volumes in the sale of poultry and feed products. The group attributed its "good results" in part to targeted marketing strategies.
"We continue to focus on cost containment and improvements in the production and processing of poultry and feed," said father-son team, Chairman Robert Levy and President and CEP Christopher Levy in a statement released this week with the quarterly financials.
The group noted that the US operations performed well with respect to the sale of its main product - fertile eggs for the broiler industry.
"Our presence in the markets remains strong with a broad customer base and we are seeing the benefits of the US dollar hard-currency earnings," the directors said.
In the other Caribbean operations, Haiti Broilers increased production and sale of table eggs to 17 per cent of the market, compared to 13 per cent at the end of the third quarter last year, stated the group.
But: "The Haitian gourde continues to depreciate against the US dollar and, therefore, ongoing cost and selling price adjustments present some challenges," they said.
A breakout of the group's $28-billion turnover shows Jamaica accounted for just under $21 billion; the US market contributed $6.3 billion; and other Caribbean operations, $935 million.
"The staff, management and directors continue to trust in the Lord's guidance for our company and are grateful for His blessings and provision," the Levys said.