Levy
DUE TO tough operating conditions, Jamaica Broilers Group Limited (JB) posted a marginal profit performance in the quarter ended October 12.
Earnings per stock unit declined slightly to 10.07 cents for the quarter. This was down from the 10.16 cents earned per stock unit in the similar period last year, according to the unaudited results released last month.
The Group's turnover increased by 10 per cent to $1.55 billion in the October quarter. This was 10 per cent greater than the turnover in the similar quarter last year.
But the cost of sales also rose by 10 per cent, so the gross profit rose by a similar 10 per cent to $399 million.
CHICKEN PRICE
A 5 per cent price increase in chicken price effected in September, combined with operational efficiencies helped to stabilised the company's gross margins, chairman R. Danvers Williams and director Robert Levy said in their joint commentary accompanying the results.
"The quarter under review was a challenging one due mainly to the impact of increased grain prices and market resistance to a price increase which only partially offset the grain price increases," the JB executives stated.
Administrative expenses rose 12 per cent to $266 million while distribution costs jumped 30 per cent to $64 million.
"Distribution costs for the quarter are above last year due to the restructuring of our cold storage management, which is now the responsibility of our marketing division," the executives stated.
Other income was boosted by 66 per cent to $37 million, to some extent compensating for the increase in expenses.
The result was a pre-tax profit of $106 million, up 8 per cent from the quarter the year before.
But taxation was boosted 40 per cent to $19 million. The tax increase was due mainly to carried forward losses available from the previous year.
Net profit after tax was thus up 4 per cent to $87 million.
After deducting the minority interest, the net profit attributable to stockholders was $86 million. This was a 1 per cent decline from the level in quarter during the previous year.
