Haiti Broilers expected to reach profit by 4Q
?JBG gets bump from ethanol operations ?Net profits up 10%
BY JULIAN RICHARDSON Assistant Business Co-ordinator richardsonj@jamaicaobserver.com
Wednesday, July 03, 2013
JAMAICA Broilers Group (JBG) expects its Haitian operation to become profitable this financial year.
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.
Sales at JBG?s ethanol operations jumped more than 58 per cent to $1.9 billion last financial year.
An inspector checks eggs at a farm in the US. Haiti?s huge demand for eggs has been a major factor behind Jamaica Broilers Group?s success in the country. (PHOTO: AP)
Sales at JBG?s ethanol operations jumped more than 58 per cent to $1.9 billion last financial year.1/2
"We saw some improvements in the results in Haiti," Ian Parsard, JBG's senior vice president for operations and finance, told the Business 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 break even and then move into some level of profit in the last quarter."
Effective April 29, 2012, on the execution of a shareholders' agreement, the joint venture arrangement was dissolved and the operations transferred to Haiti Broilers, in which JBG holds a controlling 68 per cent interest. At the end of the 2012 financial year, JBG's share of the revenue in Haiti was $107.6 million on losses of $186.2 million.
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 $29.4 negative result at the end of April 2012 to a positive $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, eight to 10 per cent of the daily needs in Haiti. So we are looking forward to great things," he noted.
?JBG gets bump from ethanol operations ?Net profits up 10%
BY JULIAN RICHARDSON Assistant Business Co-ordinator richardsonj@jamaicaobserver.com
Wednesday, July 03, 2013
JAMAICA Broilers Group (JBG) expects its Haitian operation to become profitable this financial year.
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.
Sales at JBG?s ethanol operations jumped more than 58 per cent to $1.9 billion last financial year.
An inspector checks eggs at a farm in the US. Haiti?s huge demand for eggs has been a major factor behind Jamaica Broilers Group?s success in the country. (PHOTO: AP)
Sales at JBG?s ethanol operations jumped more than 58 per cent to $1.9 billion last financial year.1/2
"We saw some improvements in the results in Haiti," Ian Parsard, JBG's senior vice president for operations and finance, told the Business 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 break even and then move into some level of profit in the last quarter."
Effective April 29, 2012, on the execution of a shareholders' agreement, the joint venture arrangement was dissolved and the operations transferred to Haiti Broilers, in which JBG holds a controlling 68 per cent interest. At the end of the 2012 financial year, JBG's share of the revenue in Haiti was $107.6 million on losses of $186.2 million.
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 $29.4 negative result at the end of April 2012 to a positive $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, eight to 10 per cent of the daily needs in Haiti. So we are looking forward to great things," he noted.
