Jamaica Broilers earnings climb despite Haiti write-off
Published:Wednesday | December 14, 2022 | 12:54 AM
Jamaica Broilers Group, JBG, has posted $842 million in earnings for the second quarter ended October, a more than forty per cent gain despite a write-off of $1.04 billion during the quarter for the discontinuation of operations in Haiti.
The performance for the quarter was led by revenue, which climbed from $18 billion to $23 billion.
Group President and CEO Christopher Levy attributed the improved performance to bustling business in the poultry producer’s two strongest markets.
“This revenue growth was primarily driven by increased production and sale of poultry, as well as increased sale of baby chicks to our small farmers in Jamaica,” Levy said.
He added that the reopening of the local economy, particularly the tourism industry, contributed to the increased demand for its line of goods, which includes chicken and chicken by-products. Meanwhile, increased production and sales under the Best Dressed Chicken brand boosted revenues in the US market.
Jamaica contributed $3.5 billion of operating profit for the half-year, spanning May to October; the US contributed $1.8 billion, up 53 per cent year on year; while the other Caribbean markets dipped into red, with an operating loss of $29 million.
The US continues to grow sales and profit, but Jamaica remains solidly out front as the primary cash cow for the group, chalking up $28 billion of the $46 billion in group sales over six months. Still, Jamaica Broilers is in the process of rolling out new investments in the US market – towards which US$20 million has been budgeted to grow production capacity – which could see it narrowing the gap.
Over six months, after eliminations of $1.1 billion from the discontinued Haiti operations, Broilers made net profit of US$1.9 billion, which was more than two times the $871 million recorded in the prior year.