Sales flat but profit rockets higher at Jamaica Broilers
Jamaica Broilers Group Limited grew half-year by 66 per cent to $1.1 billion, atop improved revenues for the market-leading poultry company.
Its most lucrative market, home-ground Jamaica, had mixed results, with sales down eight per cent.
“However, the Jamaica operations was able to record a commendable 25 per cent improvement over the prior year by improving efficiencies and the continued enhancing of our customer relationships,” Jamaica Broilers said in a statement accompanying its financial results.
It was a reference to the operating performance of the markets, which Jamaica led with a contribution of $1.8 billion, up from $1.4 billion at half-year ending October 2019.
About a month after COVID-19’s outbreak in Jamaica, Jamaica Broilers opted to slow the number of birds processed to better manage inventory; rationalised production output for its Best Dressed line of products and feeds; and implemented a five per cent cut in salary for all its staff to lessen the impact of the COVID-19 fallout on its operation.
While management was dealing with blows from COVID-19 on the Jamaican operation, the company was experiencing growth in its US operations.
Over the six months under review, the US operations reported a segment result of $696 million, up 4 per cent increase over the previous year, while revenue from that market rose 18 per cent, driven by improved poultry and feed sales. The growth in US revenue helped offset the southward drift in Jamaican sales, leading to a top-line gain of one per cent across the group to $26.5 billion, from $26.2 billion in the comparative period.
Haiti continues to weigh on the business, due to upheavals in that country – arising from continuing political stand-offs, economic instability and more recently, the pandemic – with reported segment losses of $38.7 million compared, or seven times greater than the $5.8 million losses recorded at half-year 2019, on the back of a six per cent decline in sales.