Jamaica Broilers Group has received its first shipment of wet or hydrous ethanol, 5.5 million gallons, but production start-up at its new dehydration plant remains on a mid-year timetable, the conglomerate said in a report to shareholders.

Up to the end of its financial year in April, the poultry producer had spent $910 million of the $1.2 billion investment, it said the Ethanol Production facility would require, saying the capital expenditure was reflected in the carrying value of plant and property on its balance sheet.

Consequently, its fixed assets grew from $2 billion to $3.3 billion year on year, pushing up its total assets to $4.8 billion.

But the group ended the period with negative cash, depleted by $1.22 billion of investments, -$247.4 million compared to the $417.6 million in its kitty at the top of its financial year. Its $262 million cold storage facility was also completed and put into operation during the review year, a project that doubles JBG's cold storage capacity at its St. Catherine base, from 800,000 kilograms of frozen product to 1.6 million kg.

The ethanol plant, which has a capacity of 50 million gallons, will be supplied with the hydrous raw materials by Bauche Energy Company out of Brazil in the first year of operation.

It will sell the fuel grade ethanol it produces into the North American and Caribbean markets.

The first shipment is scheduled for JBG's second quarter in autumn.

business@gleanerjm.com

Jamaica Broilers Group Year Ending April 2007

Revenues $11.4 billion

Gross Profit $2.77 billion

Operating Profit $793.4 million

Net Profit $536.2 million

Net Profit Margin 4.7%

Assets $4.8 billion

Market Cap $$4.8 billion

Shareholders' equity $4.2 billion

EPS $0.45

Stock Price $4.00

P/E 11 times