Jamaica Broilers Group reported reduced profitability after its Haitian operation posted a loss for nine months ended January 25, 2020.
“Haitian operations reported an operating loss of JM$92 million compared to a prior year operating profit of JM$146 million. Total revenue declined 22 per cent and the current decline in performance is a direct result of the political and economic instability being experienced in Haiti,” an interim from Chairman Robert Levy and President/CEO Christoper Levy read.
The group’s Jamaica operations were, nonetheless, profitable — though marginally less than a year ago.
“Jamaica operations reported operating profit of JM$2.4 billion, which was JM$96 million or four per cent below last year’s operating profit of JM$2.5 billion,” the report stated.
Meanwhile, in the US, JBG’s recent acquisitions in the North American country played the role of a double-edged sword, as it boosted revenue by 11 per cent over the prior year but profit fell by nine per cent to JM$1.0 billion.
“This decrease from the prior year’s result is 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 JM$124 million, ” the group’s chairman and president/CEO explained.
Overall, the group reported revenue of JM$40.6 billion, one per cent higher than the amount earned in the previous year. Gross profit increased at a similar rate, stopping at JM$9.9 million.
In terms of expenses, distribution and administrative costs were flat in relation to the same period a year before.
“Despite the adverse variances experienced on foreign exchange movements of JM$226 million and Haiti Broilers, the group’s operations produced a noteworthy operating profit of JM$2.2 billion,” the reported also read.