JBG’s Q3 2025 Results Take a Hit from Hurricanes and Expense Challenges

  • Jamaica Broilers Group (JBG) saw its profits blown off course in its third quarter. The company posted a net loss of $1.0Bn compared to a net profit of $1.3Bn in the same quarter last year. The downturn was largely driven by weak US segment performance and higher costs, despite a slight uptick in overall revenues.
  • Group revenues climbed to J$24.6Bn, a 5.0% increase YoY, buoyed by a 5.0% revenue rise in US operations and a 0.5% lift in Jamaica. The topline improvement reflects resilience across key segments, but it wasn’t enough to salvage the group’s profits.
  • Despite stronger sales, JBG saw gross and operating profit erosion amid rising costs. Gross profits dropped 21.0% YoY to J$4.7Bn, reflecting higher direct costs, while operating profit was also down, dented by higher operating expenses, particularly in the US, where segment profit cratered 69.0% to $922.0Mn.
  • These lower results were primarily linked to ongoing operational challenges in the US, including flooding and weak broiler performance as well as Hurricane Beryl’s disruption in Jamaica. Specifically, for the US operations, management cited rising distribution and management costs, hurricane/flooding challenges in US broiler operations and ongoing investments in strengthening internal controls and risk oversight as key sources of the weaker performance.
  • Ultimately, JBG’s Q3 results had a significant drag on the Group’s 9-month (9M) performance. Though 9M revenues were slightly up, the sharp decline in Q3 earnings erased prior momentum.
  • For Q4, management has been focused on turning around its US operations and preserving stability in its home market. As part of that thrust, it has engaged external advisors in the US to review operational controls and any implications to the financial performance of the US Operations.
  • Following the release of the financials, JBG’s stock price closed at J$30.71 on Thursday, reflecting a 9.7% decline immediately after the release. Year-to-date, its price is down 14.5%, implying a P/E of 9.22x, below the Main Market Distribution & Manufacturing Average of 13.35x.

(Source: JSE and NCBCM Research)