The Jamaica Livestock Association (JLA) which is a large animal feed distributor, recorded a $48.5 million loss for its first-quarter ending February 2010 which was 15.6 per cent worse than the same period in 2009, but the loss hides the company's balance sheet improvement.
The trading loss, posted in financials on the Jamaica Stock Exchange this month, was due to a reduction in revenues and also expenses which led the association to record a loss in operations of $33.49 million or 157 per cent worse than the $13 million loss from operations recorded as at February 2009.
Additionally, JLA continued to burn through its cash which declined by $13.2 million over 12 months to close the quarter at $4.9 million versus $18.1 million in the corresponding quarter in 2009.
The Henry Rainford-led association in its February 2009 quarter needed to raise working capital as its current liabilities were greater than its current assets by $281 million. During that 2009 quarter, the association with $200.4 million in long term loans and $153 million in bank overdrafts, proposed to sell its feed mill, which was a costly asset during the economic downturn. During the February 2010 quarter, JLA recorded marked improvement with $113 million in working capital, its bank overdraft declined by $17.1 million to $137.6 million and its long term liabilities declined from $200.4 million to $67.5 million as at February 2010.
The JLA however saw its total equity dip 12 per cent to $462.6 million mainly due to slashing the value of its property, plant and equipment from $955.6 million to $368.2 million.