JBG’s Feathers ‘Ruffled’ in Q2, but Holding Firm over Six Months

• Jamaica Broilers Group Limited (JBG) recorded a net loss attributable to shareholders of $379.3Mn for Q2 ended November 1, 2025, compared with a $756.1Mn profit in Q2 2024. Management attributed the quarterly loss primarily to continued challenges within U.S. operations, including higher feed and production costs and pressure on market selling prices, which outweighed the resilience of the Jamaican business.
• Core Q2 revenues were relatively stable at $24.09Bn (-0.2%), reflecting the offsetting impact of solid core demand in Jamaica against ongoing weakness in U.S. pricing conditions.
• However, elevated feed costs and production inefficiencies in the U.S. segment contributed to a 4.6% increase in direct costs. Consequently, Gross profit declined by 18.3% to $4.18Bn in Q2 from $5.12Bn a year earlier.
• Lower gross profits were met by a 1.0% increase in operating expenses to $3.67Bn. A 45.1% increase in distribution costs to $1.10Bn, largely attributed to the U.S. segment, was partly offset by a 10.7% decrease in Admin expenses. The group’s other income also lent a hand, increasing by 94.2% to $0.17Bn. Nonetheless, operating profits decreased, down 56.7% to $0.68bn. Net finance costs were also higher, up 31.4% to $0.91Bn. All these factors contributed to JBG’s lower Q2 profits.
• Despite the weak Q2 profits, the company recorded net profit of $1.22Bn for the six months ended November 1, 2025 (6M 2025), a 17.0% increase relative 6M 2024. JBG also completed the revaluation of its land and buildings. This added approximately $53Bn to asset values and $41Bn to stockholders’ equity. The revaluation pulled the group from a shareholder’s deficit of $10.03Bn to positive shareholders’ equity of $31.54Bn.
• Management noted that stronger Jamaican operations and decisive corrective actions underway in the U.S. helped offset the Q2 setback. Notably, it has already taken steps to improve cost performance, including optimising live-bird yields, enhancing plant efficiency and adjusting pricing where market conditions allow. However, the company communicated its willingness to sell the U.S. meat business if it received a suitable offer.
• Meanwhile, the resilience of the Jamaican business could be tested by Hurricane Melissa. Strong holiday demand and robust inventory are expected to drive high chicken sales for the company. However, the feed business faces a downturn as Hurricane Melissa decimated small farmers in Western Jamaica, who are the primary customers. While other regional farmers may ramp up production to fill supply gaps, the net impact on feed revenue remains uncertain.
• As at the close of trading on Wednesday, JBG’s stock price closed at J$17.20, reflecting a 52.1% year-to-date drop.

(Source: JSE, NCBCM Research)