The Haitian operations of the Jamaica Broilers Group (JBG) are apparently becoming a cause for concern regarding its financial performance, which is being significantly affected by the current instability in the French-speaking Caribbean territory.
In the last two quarters, the Haitian subsidiary reported a decline in both profits and revenues. In its latest unaudited financial results for the second quarter ended October 2019, JBG Haiti continues to register a decline in both profits and sales.
Jamaica Broilers Haiti experienced a segment loss of $6 million, coming from a profit of $85 million in the previous year. Total revenues declined by five per cent.
The management of the group says the current decline in performance is a direct result of the political and economic instability being experienced in Haiti.
In its first quarter ended July this year, the Haiti operations reported a segment result of $19 million, which is $41 million or 68 per cent below last year’s segment result of $60 million. Total revenue for that period declined by 10 per cent with the loss in both profit and revenue blamed on the country’s political and economic instability.
US and Jamaican operations
In the meantime, JBG US operations continues to do well with total revenues for second quarter increasing by 15 per cent over the prior year driven by increased sales of its main products – fertile eggs and baby chicks, as well as feed sales. The US operations reported a segment result of $671 million, which was a one per cent increase over the prior year’s result of $666 million.
As for the Jamaican operations, it is reporting a segment result of $1.42 billion, which was $64 million or 5 per cent above last year’s segment result of $1.35 billion. This improvement was attributed to increased poultry sales and enhanced inventory management.
For the entire group, revenues for the six months amounted to $26.3 billion, a two per cent increase over the $25.7 billion achieved in the corresponding six months of the previous year. Gross profit for the six months was $6.5 billion, a 4 per cent increase over the previous year.