Agricultural conglomerate Jamaica Broilers Group (JBG) experienced a mixed first quarter, ended July 2022, during which two of their three segment operations performed below par.

This resulted in a six per cent decline in pre-tax profit of J$1.4 billion, down from the J$1.5 billion achieved in the quarter ended April 30, 2022. Group revenues for the first quarter amounted to J$23.0 billion, which represents a 12 per cent increase above the J$20.6 billion achieved in the preceding quarter. Gross profit for the quarter amounted to J$5.3 billion, a 14 per cent reduction from the quarter that ended April 30, 2022.

Segment results        

The Jamaican operations reported a segment result of J$1.88 billion, which was two per cent below the  J$1.92 million achieved in the quarter ended April 30, 2022. Total revenue for the Jamaican operations showed an increase of seven per cent over the quarter ended April 30, 2022.

This increase, according to the group, was primarily driven by increased production and sale of poultry, as well as the increased sale of baby chicks to Jamaican small farmers. The reopening of the Jamaica economy, particularly the tourism industry has contributed to the increased demand driving sales.

In the meantime, JBG US operations reported a segment result of J$815 million, which was J$168 million or 26 per cent over the J$647 million achieved in the quarter ended April 30, 2022. This increase was primarily driven by the increased production and sales in the Best Dressed Chicken line of products, as well as increased feed sales.

Total revenue showed an increase of 22 per cent over the quarter ended April 30, 2022.

Haitian subsidiary continues to chalk up losses

Regarding the Haitian operations, there have been significant improvements even though the subsidiary continues to drag on the group’s operations. The Haitian subsidiary reported a segment loss of J$83 million compared to losses of J$354 million in the quarter ended 30 April 2022, a reduction in the loss of $271 million or 77 per cent.

Total revenues were reduced by 61 per cent as a result of the continued downsizing exercise. Operations in Haiti are being reviewed and evaluated to determine the future viability of the business, amid the country’s economic and political instability.