Jamaica Broilers Group (JBG) disclosed that external advisers have identified significant accounting irregularities in its U.S. operations that could materially impact the company's financial statements.
The disclosure, which can be found on the Jamaica Stock Exchange (JSE) website, follows a months-long investigation that began after JBG identified "several issues related to expense management and operational controls" in its U.S. operations, prompting the company to engage external advisors for a comprehensive operational review.
According to preliminary reports from the external advisers, the issues center on "unsubstantiated accounting valuation methodologies" affecting multiple financial statement categories, including:
- Inventory valuations
- Biological assets accounting
- Historical profitability calculations
JBG characterized these findings as "material prior period errors" that will require full correction once the company's annual financial audit concludes.
“In keeping with our commitment to transparency, we immediately engaged independent external advisers in the United States to conduct a comprehensive review," JBG President and CEO Chrisopher Levy said in a press release. Since then, we have received verbal and preliminary findings which are not yet finalized but suggest that certain accounting valuation methodologies used in the U.S. operations — specifically those relating to inventories and biological assets — may be unsubstantiated. These issues appear to constitute material prior period errors and will be fully corrected upon the conclusion of our ongoing annual financial audit which is underway.”
Financial impact expected
The Jamaican company warned shareholders to expect a “material negative impact" on both the historical profitability of U.S. operations and the group's consolidated retained earnings and capital. The company anticipates having to restate inventories and biological assets figures, though specific dollar amounts were not disclosed.
JBG's board and senior management emphasized they are actively addressing the operational and financial control issues with support from legal and financial advisors. The company stated its focus remains on accurate reporting on the profitability of the U.S. operations and for the company."
JBG has already met with JSE officials and is engaging with the Financial Services Commission. The company committed to keeping regulators, shareholders, and the investing public informed of developments that could materially impact operations.
The timing of final corrections will depend on completion of JBG's annual financial audit, with the company promising full transparency once external advisors finalize their findings.
History of Jamaica Broilers in the United States
Jamaica Broilers does business in the United States as Best Dressed Chicken.
The company officially entered the U.S. poultry processing industry in 2019 when it signed an agreement to acquire the former Gentry’s Poultry Company plant in Ward, South Carolina. The company had previously acquired a hatchery in Big Valley, Pennsylvania from Bell & Evans and a feed mill in Georgia from Crystal Farm Mills.
JBG reached an agreement in 2024 to sell its hatchery in Bancroft, Iowa.
According to the WATTPoultry.com Top Poultry Companies Database, Best Dressed Chicken produced 2.04 million pounds of ready-to-cook chicken on a weekly basis in the U.S. in 2024, making it the 27th largest poultry producer in the county. However, those rankings were made prior to the 2025 transaction in which Miller Poultry acquired Gerber’s Poultry.
