July 8, 2013

Jamaica Broilers Group's (JBG) Haitian operation is expected to become profitable this financial year.

Jamaica Broilers Group's (JBG) at the end of April wrapped up a full year of operating in the neighbouring Caribbean island on its own, through subsidiary company Haiti Broilers. Initially established in 2010 as part of a joint venture arrangement, the Haitian operation has evolved from simply importing and distributing animal feed and chicks to a wide- ranging one, with a production facility in the country that consists of a feed mill, hatchery and poultry farm.

"We saw some improvements in the results in Haiti," Ian Parsard, JBG's senior vice president for operations and finance, told the Jamaica Observer as he discussed the group's performance for the year ending April 27, 2013.

"We have some ways to go to move it into a break-even position but we expect to do that sometime this financial year," Parsad added. "I would say, by the time we get to quarter three, we are expected to reach breakeven and then move into some level of profit in the last quarter."

JBG's performance in Haiti for the 2013 financial year is included under its "other" segment, a combination of numerous services outside the firm's core business in Jamaica, including a breeder operation in the US. That segment turned around from a US$29.4 negative result at the end of April 2012 to a positive US$355.9 million for the financial year under review.

Donald Patterson, vice-president of accounting and information system at JBG, said in May that Haiti's huge demand for eggs was a major factor behind the company's success in the country.

"In Haiti the cheapest form of protein for them is the egg. They actually consume over a million eggs per day. We in Jamaica, our consumption is no more than maybe one or two eggs per week on average," Patterson said.

"Down there you have 10 million people and they are going through a million eggs per day. So we see the egg business as one with great potential and by the end of April of 2014 we expect to be producing, perhaps, 8-10% of the daily needs in Haiti. So we are looking forward to great things," he noted.

Meanwhile, JBG reported solid results for the 2013 financial year, with total revenues growing by 12% to US$26.5 billion on net profits of US$1.03 billion, 10% more than the prior financial year. There was positive development in its ethanol operations, with revenues jumping by more than 58% to US$1.9 billion. The segment result was a positive US$335.8 million, more than four times the US$62.8 million result the year prior.

While sales increased by 6% to US$13.4 billion in the Best Dressed Foods division, which sells processed poultry and other products, the segment's positive result of US$929 million was 8% less than the prior year. The company's other major division, Hi-Pro Ace, which sells manufactured feeds, baby chicks and other farm and household supplies, saw its result fall by 19% to US$910.5 million despite revenues being marginally higher at US$8.9 billion. Parsard blamed the fall-off in those segments to challenges in the Jamaican economy. Going forward, JBG remains positive despite the clear challenges in the economy.