Jamaica Broilers Group (JBG) President and CEO Chris Levy has issued a stark warning about the company’s upcoming third quarter, citing a dual crisis of collapsing US meat prices and the disruptive effects of Hurricane Melissa on its core Jamaican market. Despite a recent operational turnaround that slashed US production costs by a third, Levy emphasized that external shocks now pose the greatest threat to recovery. This warning contrasts sharply with JBG’s strong Q1 performance, which saw a $1.6 billion profit, attributed to the initial success of its operational overhaul. However, Levy cautioned that this momentum is unlikely to continue, predicting a “bumpier” path to full-year recovery. The company’s Q2 results, expected by mid-December 2024, will include a significant $40 billion asset revaluation aimed at rebuilding shareholder equity. Meanwhile, Q3, covering the period ending January 31, 2025, is expected to be particularly challenging, with US meat prices plummeting and Jamaican revenues projected to dip by 5-6% due to the hurricane’s impact. While JBG’s main revenue driver, Best Dressed Chicken, is expected to remain resilient, its Hi-Pro division, which supplies baby chicks and feed, is likely to face significant challenges. Despite operational improvements in the US meat business, falling prices may negate these gains. Levy confirmed that strategic reviews are underway, including potential difficult decisions for the US meat business, with a possible exit still on the table. The company’s ability to navigate these turbulent economic and environmental conditions will be critical to its full recovery.
Levy warns of Q3 perfect storm: US meat price collapse and Hurricane Melissa bite into JBG’s recovery
