By Ashford W. Meikle, Staff ReporterTHE JAMAICA Broilers group, headed by Robert Levy, has posted healthy unaudited results for the quarter ending July 24, 2004.
Registering a 21 per cent increase, revenue was a little over $2 billion compared to last year's earnings of $1.7 billion for the similar quarter.
However, the 23 per cent increase in cost of sales (from $1.2 billion to $1.5 billion) translated into a disproportionate 11 per cent increase in gross profits. Gross profits moved to $459 million from $412 million.
The group has managed to control distribution costs and administrative expenses. Together, these increased by 18 per cent, from $320 million to $375 million. Operating profits registered a ten per cent decline, from $100 million to $90 million. However, owing to significant increase in its finance income, there was a 25 per cent increase in pre-tax profits. Similarly, net profits appreciated 25 per cent, from $57 million to $71 million.
LARGEST SUPPLIER
Jamaica Broilers is the country's largest supplier of poultry products and packaged seafood. Content Quality Beef and Reggae Jammin are also part of the group.
In the wake of Hurricane Ivan, Broilers has sought to assure the public and its shareholders that it is operating normally, with its facilities undamaged.
Chicken production resumed just three days after the hurricane and it suffered only a 30 per cent loss in chickens.
In newspaper advertisements, the company stressed that the losses as a result of the hurricane will not affect their bottomline since the "JB group is fully insured against loss of property and livestock," the company stated in newspaper advertisements, adding that, "Profits are also insured as part of our Business Interruption Coverage." In spite of the passage of the hurricane, several analysts have expressed confidence in Jamaica Broilers. Both investment management house, Mayberry Investments, and investment bank, Dehring, Bunting and Golding see it in a positive light.
"The year will be good," said Kevin Donaldson of Pan Caribbean Financial Services. "The company has benefited from a stable exchange rate, grain prices are going down and the company has significant cash. It has also built two silos and then there is its acquisition of Kingston Hatcheries, which should boost production and increase market share."
Up to press time the Financial Gleaner was unable to get a comment on the results from the management at Jamaica Broilers.
