Jamaica Broilers registered flat earnings for nine months to January 25, 2020, as a result of an operating loss for its Haitian business and acquisition costs in other segments.
Total revenue declined by 22 per cent as a direct result of the political and economic instability being experienced in Haiti. Haitian operations reported an operating loss of $92 million compared to a prior year operating profit of $146 million.
Still, the group recorded profits attributable to stockholders of $1.2 billion or $1.16 per stock unit for the nine months. Group revenues for the nine months amounted to $40.6 billion, a one per cent increase over the $40.3 billion achieved in the corresponding nine months of the previous year. Gross profit for the nine months was $9.9 billion, a one per cent increase over the previous year. Jamaica Operations reported operating profit of $2.4 billion, which was $96 million or 4 per cent below last year’s operating profit of $2.5 billion.
US operations reported an operating profit of $1.0 billion, which was a 9% decrease from the prior year’s result of $1.1 billion. Total revenue for US operations increased by 11 % over the prior year, driven by recent acquisitions of a feed mill in Georgia and a processing plant in South Carolina, which have now been rebranded Best Dressed Chicken.
Jamaica Broilers said results in this segment was primarily due to increased acquisition costs associated with the processing plant and the previous year’s results included a one off gain on the acquisition of a business for $124 million.
Overall, despite adverse variances experienced on foreign exchange movements of $226 million and Haiti Broilers, the Group’s operations produced operating profit of $2.2 billion.