More strengthening of finances after massive losses from partially sold American subsidiary

Durrant Pate/Contributor

Jamaica Broilers Group (JBG) is bouncing back strongly, posting net profit of $813 million, operating cash inflows of $1.7 billion and a further strengthening of its financial position for the first quarter of the 2026/2027 financial year

The first quarter ended August 2026 opened the 2026/2027 financial year with both operating segments contributing positively. This is JBG’s first profitable quarter following losses in each of the final three quarters of the 2025/2026 financial year.

Group revenues amounted to $19.3 billion, an increase of 5% over the $18.3 billion posted in the corresponding quarter. Demand for chicken products and fertile eggs remained strong across both the Jamaican and American markets.

Financial position strengthened

JBG’s financial position strengthened further during the quarter, with operating activities generating $1.7 billion of cash. Total borrowings reduced to $37.7 billion from $43.5 billion a year earlier, a reduction of $5.8 billion.

After two difficult years, the management is now seeing the company return to profitability and is optimistic about the future while still have some headwinds to work through. The Jamaican operations reported a segment result of $1.8 billion, which was $295 million or 14% below the prior-year quarter, on revenue of $14.7 billion, in line with the prior year.

The reduction is primarily attributable to the higher depreciation charge arising on the land and buildings revalued at the end of the second quarter of the prior financial year. For the remainder of the financial year, the focus is on continuous improvement.

Demand for our new products is strong, and the management continues to innovate to the benefit of customers. The American operations reported total revenue of $5.8 billion, an increase of 20% over the prior-year quarter, with external revenue up 27% to $4.6 billion.

The segment result was $557 million, compared with $1.3 billion in the corresponding quarter. The feed mill and hatchery operations previously supplied the United States poultry business that was sold. Without that principal customer, those two business lines operated at lower volumes, which accounts for most of the fall in gross margin for the quarter.

For the remainder of the financial year, JBG expects continued strong fertile egg sales to our markets in North America, South America and the Caribbean.