Jamaica Broilers is reassuring investors that its overall business remains strong and ready to grow, despite the challenges in its US business.

The company released a statement to the Jamaica Stock Exchange explaining that early reports showed “unsubstantiated accounting valuation methodologies” were used for key items like inventories and biological assets. These are the chickens and cattle the company raises in the US. 

Taking Stock Analyst David Rose explained that “unsubstantiated accounting valuation methodologies” presented a major problem for the company.

“They’re basically saying that whatever was taking place in terms of valuing some of these key assets in the USA, was not being done in a manner that is consistent with accounting standards,” he explained.

Rose noted that because of this, Jamaica Broilers said it might have to fix past numbers, and that could lower the profits it reported before.

In March, Jamaica Broilers explained that its third-quarter results were delayed because the company identified some control and expense mismanagement issues in the US. It then paused its dividend payments and replaced its US management team early this year. Some bills were not recorded at the right time, which led to them reporting a loss in their latest quarter. 

Group President Christopher Levy said the company hired outside experts in the US and was working with its board and regulators to make sure the books were correct. JBG also replaced the entire management team of the US operations.

However, JBG is reassuring investors that company is still in good standing and have engaged the JSE and FSC.

 NCB Financial Group’s CEO Robert Almeida also said he was confident in Jamaica Broilers and that NCB stood firmly behind the company 

Investors were told to watch for the final audit, due in early July, and to be ready for any restated numbers. The company said its Jamaican arm was still solid and would help the US side get back on track.