Jamaica Broilers Records Lower Q1 FY2026/2027 Earnings

• Despite higher topline growth, Jamaica Broilers Group Limited (JBG) reported a reduction in profits (-49.0%) for its first quarter ended August 1, 2026 (Q1 FY2026/27) relative to Q1 2025 due to higher administrative and operating expenses. However, the results signal its return to profitability following losses in each of the final three quarters of FY2025/2026 as the Group navigated its restructuring and divestment activities.
• Revenues increased 5.4% year over year (YoY) to J$19.29Bn, supported by strong demand for chicken products and fertile eggs across its operating markets, while net profit stood at J$813.38Mn, down from the restated J$1.60Bn profit from continuing operations in the previous corresponding quarter.
• Profitability from the Jamaican operations declined, with segment profit falling 14.1% YoY to J$1.80Bn, despite segment revenue holding broadly flat at J$14.70Bn. Higher depreciation charges, following the revaluation of land and buildings at the end of the prior financial year, were behind the softer segment results. That being said, management noted that demand for new products remains strong and the company will continue focusing on operational improvements for the financial year.
• The United States (U.S.) operations also remained profitable, but faced a more difficult operating environment following the sale of The Best Dressed Chicken, Inc. The segment generated revenues of J$5.80Bn, up 20.0% YoY, with external revenue (earned from customers outside the Group) rising 27% to J$4.60Bn. However, segment profit fell to J$557Mn from J$1.30Bn as the feed mill and hatchery operations operated at lower volumes without their former principal customer (the U.S. poultry business).
• Higher costs also took a bite out of Group profitability, as cost of sales increased 17.13% to J$14.53Bn, reducing gross profit 19.3% to J$4.77Bn and narrowing gross margin to 24.7% from 32.3%. Depreciation more than doubled to J$642Mn following the first full quarter of charges on revalued land and buildings, while administrative expenses increased by 8.6% to J$2.14Bn. Consequently, operating profits declined to J$1.84Bn (-44.8%), compressing margins to 9.5% from 18.2% in Q1 FY2025/2026.
• Finance costs also rose modestly (+2.2%), further dampening profit before taxation (-58.7% to J$1.05Bn), while net profit fell 49.0% to J$813.38Mn.
• Looking ahead, stronger margins and the return of its continuing operations to profitability provide a firmer foundation 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 29, 2026, JBG’s share price was J$14.31, representing a 16.8% decline year-to-date. At this level, the stock’s P/B of 0.73x is below the Main Market Distribution & Manufacturing sector average of 1.56x.

(Sources: JSE & NCBCM Research)