JBG Posts J$6.80Bn Loss Despite Core Operating Profit

  • Jamaica Broilers Group Limited (JBG) reported a net loss of J$6.80Bn for the year ended May 2, 2026, narrowing FY2025’s loss by 5.9%.
  • The loss was driven by a J$9.76Bn hit from the discontinued operations. This comprised a J$6.00Bn net loss from The Best Dressed Chicken, Inc., the Group’s underperforming US broiler processing subsidiary, before its assets were sold, and a J$3.75Bn loss on the sale itself, as the assets’ J$8.69Bn carrying amount far exceeded the J$4.98Bn in proceeds. Still a partial booster shot was that continuing operations returned to profitability, generating a net profit of J$2.96Bn compared with a J$2.95Bn loss in FY2025. Revenue from continuing operations increased 2.3% to J$74.26Bn. This was supported by a 20.1% growth in external revenue from the Group’s continuing US operations to J$14.45Bn, while Jamaica external revenue declined 0.9% to J$60.17Bn.
  • Cost of sales fell 7.8% to J$52.97Bn, driving a 41.5% increase in gross profit to J$21.66Bn and a 799 basis points widening in gross margin to 29.0%. Meanwhile, total operating expenses fell 4.9% to J$14.58Bn. Distribution costs rose 24.4% to J$3.58Bn, but administration and other expenses declined 11.7% to J$10.99Bn, reflecting lower staff and inventory costs. With other income more than tripling to J$623.62Mn, operating profit rose to J$7.71Bn from J$167.10Mn, with the operating margin expanding to 10.3% from 0.2%.
  • Finance costs eased by 1.6% to J$2.49Bn, but the operating profit jump was supstantial enough to drive profit before tax to J$5.15Bn, versus a J$2.32Bn loss a year earlier.
  • Notably, EY issued an unmodified audit opinion1 compared with the prior auditor’s qualified opinion on FY2025, which had related to accounting irregularities in the US operations. An independent forensic review completed after year end found no additional transactions or irregularities requiring adjustment. However, certain covenants on US subsidiary facilities were not met, and a forbearance agreement with lenders expires on October 16, 2026. Management expects positive cash flow and EBITDA from the US operations in FY2027 and is pursuing cost controls, additional working-capital funding and revenue growth initiatives.
  • Looking ahead, stronger margins and the return of continuing operations to profit provide a firmer platform for FY2027. Nonetheless, the durability of the recovery will depend on sustained performance in Jamaica, the viability and refinancing of the remaining US operations, and tighter control of finance and tax costs.
  • At the close of trading on September 22nd, JBG’s share price was J$12.27, representing a 28.7% decline year-to-date. At this level, the stock’s P/B of 0.64x is below the Main Market Distribution & Manufacturing sector average of 1.50x.

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1An unmodified audit opinion (often called a clean opinion) is a report issued by an independent auditor stating that a company's financial statements are presented fairly in all material respects and comply with accounting standards like GAAP or IFRS

(Sources: Jamaia Broilers Group Ltd. Financial Statements & NCBCM Research)