JBG Reports Increase in Net Profit Despite COVID-19 Impact

• Jamaica Broilers Group Limited reported a 12.4% (or $45.66Mn) increase in net profit attributable to shareholders to $414.06Mn (EPS: $40.60), for the three months ended August 1, 2020, relative to the corresponding 2019 period.
• Though the company realized a 5.1% (or $678.74Mn) decline in revenues, owing to the impacts of COVID-19, this was outweighed by a 3.0% ($302.21Mn) drop in the cost of sale, a 16.5% (or $375.23Mn) decline in administrative and other expenses, and a 255.3% ($194.96Mn) rise in other income during the period.
• Management attributes JBG’s improved results in early decision-making, aggressive cost reductions, and improved FX positions. It has also refocused on the absolute basics to keep the company running profitably due to the challenges brought on by COVID-19 which has translated into a better and deeper foundation for the company.
• The company’s stock price has decreased by 40.8% since the start of the year, closing Thursday’s trading session at $24.23. At this price, the stock currently trades at a P/E of 17.1x earnings, which is below the Main Market Distribution & Manufacturing Average of 22.6x.

(Source: JBG Financials)