Jamaica Broilers sales energise its bottom line
Freed of its loss-making energy asset, Jamaica Broilers Group's egg and poultry sales across three geographic markets pushed up the company's earnings by nearly 50 per cent in the third quarter ending January.
Sales in the quarter climbed 18 per cent to $11.7 billion, and from that Jamaica Broilers scored $722 million in net profit, which, in turn, was up 49.5 per cent year-on-year.
Those results reflect a liberation from costs, now that Jamaica Broilers' balance sheet is no longer feeling the drag of an idle ethanol plant that was sold last year, and which, up to then, required the poultry group to pump funds into its routine maintenance. JB Terminal, formerly JB Ethanol, was sold to West Indies Petroleum Limited (WIPL) last June for US$4 million cash. WIPL also assumed the ethanol company's debts of US$18.5 million.
The group's activities span Jamaica, Haiti and the United States.
Over nine months, Jamaica Broilers' profits were up 30 per cent to $1.58 billion that equated to earnings per share of nearly $1.29 compared to about $1.02 the previous year from continuing operations. Revenue for the nine months topped $32 billion, having spiked nearly 15 per cent.
The Jamaican segment reported earnings of $1.9 billion over nine months, or $2.4 billion once normalised for exceptional items, which means earnings for the segment were flat at the same $2.4 billion level a year ago.
The US segment improved seven per cent to $857 million, driven by increased sales in its main products fertile eggs and baby chicks, stated the results.
In the 'Other Caribbean' segment, which includes Haiti Broilers, its share of earnings, $793.5 million or $299 million once normalised which was 161 per cent above the $144.7-million contribution it made to the group last year, stated the company.
The company again grew its market in Haiti, increasing the production and sale of table eggs to 21 per cent of the market, compared to 13 per cent the previous year.