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Bizbriefs: Earnings reports

Published:Friday | February 17, 2017 | 2:00 AM

Sweet River predicts annual profit

Sweet River Abattoir & Supplies Company expects to post a slim profit for its full financial year, which would reverse its trajectory of losses as pig supplies improve.

The company offered no precise earnings guidance. However, for the nine months ending December 2016, the meat company posted earnings of one cent per share. Its financial year closes in March.

"We are projecting to show a small profit in 2017 compared to losses in the two previous years. This momentum is expected to continue as we seek to expand our markets and strengthen our management team going forward," said the company in its third-quarter financial report.

For the quarter, Sweet River posted revenues of $79 million, down from $89 million a year earlier, but it operated more efficiently, resulting in a net profit of $89,000 compared to a net loss of $2.1 million.

Over nine months, the company turned over $257 million in revenue and earned net profit of $1.04 million, compared with revenue of $159 million and profit of $517,000 in the 2015 period. Those profits were fully erased by year end March 2016, when the meat producer made an annual net loss of $7.2 million.

The reduction in the December 2016 third-quarter sales was due to what the company said was "over supplies of pig in the market".

Joint venture boosts Eppley

Financing company Eppley Limited made annual profit of $107 million, aided by earnings from a new joint venture investment.

That equated to earnings per share of 66 cents, up from 47 cents. Discounting the one-off gain from the joint venture, earnings remained flat at 47 cents per share for the year ending December 2016.

At the end of the year, Eppley owned a $1.9-billion investment portfolio consisting of loans, leases and receivables. The average income yield of its portfolio was 14 per cent.

"In September, we purchased an investment property through a joint venture in which we own a 50 per cent interest. Our financial results include our share of the profits of this joint venture. Last year, the joint venture recognised a one-time gain on the acquisition of the investment property," Eppley said.

The one-off gain amounted to $30.5 million.

Eppley did not provide specifics of the joint venture but back in December last year, the company confirmed that it was a partner in the acquisition of Empire Shopping Centre in Cross Roads, and an adjoining car park. The entire shopping complex consists of approximately 35,000 square feet of retail space, while the adjoining lot spans 27,000 square feet.

steven.jackson@gleanerjm.com