JBG Continues to Record Increased Sales
- Jamaica Broilers Group (JBG) reported a net profit of $1.91Bn for its six months ended October 29, 2022, representing a 119.3% increase relative to last year. This performance was mainly attributed to strong revenue growth, though losses from discontinued operations tempered bottom-line growth. Net profit from continuing operations for H1 amounted to $3.02Bn, 220.0% higher than the corresponding period of 2021.
- Over the six months, JBG revenues increased by $10.76Bn or 30.7% to $45.84Mn. This revenue growth was primarily driven by increased production and sale of poultry, as well as the increased sale of baby chicks to small farmers. The reopening of the Jamaican economy, particularly the tourism industry, also contributed to the increased demand that drove sales.
- However, the company’s cost of sales has increased by 24.9% to $34.75Mn, which weighed on its gross profit margin, declining from 79.3% in H1 2021 to 75.8% in H1 2022. However, its operating profit margin improved to 9.7% from 4.9%, highlighting increased operating cost efficiency.
- Going forward, the company is expected to see both revenue and net profit growth for the coming quarters, as it benefits from the Christmas season demand and increased tourist arrivals influencing demand for its products.
- JBG’s stock price has decreased by 0.15% since the start of the calendar year. The stock closed Monday’s trading session at $28.99 and currently trades at a P/E of 8.3x, which is below the Main Market Distribution & Manufacturing Average of 15.4x.
(Sources: JSE and NCBCM Research)