Jamaica Broilers Profits Up 11 Per Cent in Q311 March 2011
JAMAICA - In its third quarter ended January 2011, the Jamaica Broilers Group (JBG) continues to post positive results despite the soft demand for its sugar cane product, inflation increases and an ongoing reduction in interest rates.
JBG reported third quarter profits of $362 million, 11 per cent over the $327 million reported in the corresponding quarter of 2010, according to Jamaica Observer.
Even though turnover declined four per cent to J$5.7 billion, a corresponding reduction in the cost of sales of J$$339 million or 7 per cent meant that JBG's 2011 third quarter gross profit position remained above 2010 levels. Other operating income also grew J$19 million or 98 per cent over prior year's quarter which moderated the increase in distribution costs and administrative and other expenses- a result of inflation. Operating profit of J$526 million was J$39 million, or 8 per cent over 2010 levels. Operating segments in the Group include the Best Dressed Foods division, which undertakes the sale of processed poultry and other products; HiPro-ACE Division, which comprises the sale of manufactured feeds, baby chicks, other farm and household supplies, and the Ethanol operations, which is involved in the processing and sale of fuel grade ethanol.
Good ethanol business
Despite higher sugar prices and weakened demand for sugar cane in the Brazil market, JBG's processing and sale of fuel grade ethanol, is reporting "year to date positive results" of j$171 million as tolling contracts keep the segment in a positive position.
However, the contribution of the ethanol segment to Group's profits has declined over the nine months ended 29 January 2011, weighing in with J$170 million which translates into just 9 per cent of Group results for the period, whereas in 2010 ethanol operations accounted for 34 per cent of profits with $765 million.
Chicken is king
The fallout was made up through the operations of the Best Dressed Foods division, which for the period ended January 29, 2011, contributed the majority of the Group's results with J$883 million or 45 per cent. At the 2010 period the division contributed 32 per cent of total results.
Shareholders' earnings per share increased to $30.20 for the quarter under review, compared to $27.27 for the prior year's corresponding period.