Dec 2010 Financial News

Jamaica Broilers profit down 44 per cent. Firm to explore market in Haiti.

Dec 15, 2010

The Jamaica Broilers Group Limited (JBG) is reporting a 44 per cent decline in second quarter profit for the three months ended October 30, 2010.

Following a 10 per cent decline in revenue and a 32 per cent fall off in operating profit to $321 million for the quarter, net profit declined to $173 million, down $138 million from the $312 million recorded at the corresponding period of 2009.

The decline continues a fall off in activities in the international ethanol markets, which consequently reduced JBG's tolling activities. Heavy rains in October also caused a decline in the sales volumes of baby chick and feed.

These ethanol and HiPro-Ace segments, dealing with the processing and export of fuel grade ethanol and poultry segments respectively, account for almost half of JBG's segment results for the October quarter resulting in a real decline in profit for the period.

In addition, distribution and administrative costs increased by $17 million and $62 million respectively over prior year's quarter, this as a result of development costs involved in exploring a wider Caribbean market for its poultry products, including Haiti.

In a statement to shareholders, Robert Levy, chairman of JBG attributed the increases to due diligence and development costs for entry into the market.


Source:
Jamaica Observer
Wednesday December 15, 2010

http://www.jamaicaobserver.com/business/Jamaica-Broilers-profit-down-44-per-cent_8233974#ixzz18Csdito8