Jamaica Broilers Group(JBG) Records Increased Earnings

JBG’s earnings for the FY2012/13 increased 10.1% to $1,030.48Mn (EPS: $0.91).

This was driven by a 12.0% increase in revenues as the Ethanol operations maintained production under tolling contracts at close to full capacity for most of the quarters. However, rising input prices and the depreciation of the Jamaican currency tempered the effects of higher revenues as the company felt constrained in passing on these costs to customers in the current weak economic backdrop. As such, margins remained stable at 20.6% (relative to 20.0% in previous year).

The company also faced significant increase in Distribution and Administrative expenses (up 23.7% and 19.1% respectively) due to one off events which hit the company’s bottom-line. At $4.97, the stock is currently trading at a P/E ratio of 5.46X and a P/B of 0.61X.