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Poultry producer Jamaica Broilers Group (JBG) has returned to a positive capital position following an upswing in its assets, according to its latest second quarter financials.
“The group completed the revaluation of its land and buildings, adding approximately $53 billion to asset values and increasing stockholders’ equity,” according to Chairman Robert Levy and CEO Christopher Levy, said in a joint statement in the financials.
Up to November, the capital hovered at $32 billion, compared to $10 billion in negative equity a year earlier.
It comes after accounting irregularities in JBG’s US operations which wiped out billions and pushed the group into a negative position. Stephen Levy, president of the US operations, and Syd Mogg vice-president of US operations, both resigned in May, according to the annual report.
Despite the revaluation, market sentiment remains cautious. The stock has traded flat around $17 since the release of the financials. It remains well below last year’s highs, down more than half a year to date.
The revaluation also did not resolve operational and structural weaknesses, particularly in the US. “The segment result for the US operations was lower for the period, reflecting increased feed and production costs, along with continued pressure on market selling prices,” the group said.
Overall, JBG posted a consolidated second quarter loss of $380 million, compared with a profit of $756 million a year earlier. Half-year results were stronger, however, with profit rising to $1.22 billion from $1 billion a year ago, supported by domestic operations.
English (US) ·