JAMAICA - Jamaica Broilers Group (JBG) has benefited from increased local poultry sales and strong growth in the US which allowed it to post $331 million profit in its first quarter ending August 2015, nearly triple the amount earned a year earlier.
Sales grew to $8.9 billion in the quarter, or 13 per cent higher than a year earlier.
"We are recording increased sale volumes in poultry and feed products. In addition, our focus on cost containment and improvements in the production processes for poultry and feed are bearing fruit," according to a statement, signed by chairman Robert Levy and president Christopher Levy, which accompanied the financials.
"US operations are now at an optimal level with respect to the sale of our main product - fertile eggs for the broiler industry. We expect steady growth in other product lines in this segment."
The Haiti Broilers operations increased production and sale of table eggs to 13 per cent of the market, compared to 8.0 per cent at the end of the first quarter last year. However, it suffered from currency depreciation in the quarter.
"The positive effect of this volume growth has, however, been neutralised by significant increases in operating costs due to the depreciation of the Haitian Gourde against the US dollar during this quarter. Our move into sustained profitability in Haiti has therefore been delayed," stated management.
Since the third quarter of its 2015 financial year, the group re-organised its segment accounts to reflect geographic income rather than the type of goods produced. It signalled the increasing importance of its overseas markets for the group which now earns one-third of its results from its US egg operations.
The Jamaica operations still earned the highest with $697 million from $6.7 billion in revenues for the August quarter.
The US operations earned J$266 million on J$2.6 billion in revenues; while other Caribbean operations recorded a $1.2-million loss on $463.4 million in revenues due primarily to currency depreciation in Haiti.
JBG holds $11.7 billion in shareholder equity with assets totalling $22.1 billion.
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