Having graduated to the Main Market of the Jamaica Stock Exchange (JSE), soap maker Blue Power Limited presented reduced profits for the six months ended October 31, 2020, reporting profits from continuing operations of J$49.89 million as compared to $51.58 million the previous year.
For the October quarter, overall sales from continuing operations for the company was J$151.99 million which included new sources of income not available in the previous year and represented an increase of 35 per cent over prior year.
Profit before tax was $22.38 million which produced an overall profit of $16.78 million after the deduction of $5.60 million of estimated tax at the standard rate.
Blue Power, which listed as a Junior Market firm ten years ago, previously benefitted from tax incentives which are now no longer available.
Its unaudited six month results includes the full tax rate for companies as well as provision for estimated credit losses and additional expenses for staffing the administration to handle the accounting functions of Lumber Depot Limited, management outlined
Chairman Dhiru Tanna said, in remarks attached to the results, that Blue Power had shipped substantial quantities of soap to the United States in the first quarter in order to meet the demand from new customers such as Wal-Mart.
However, he noted, retail sales through these accounts were not sufficient enough to justify the same level of reorders for the second quarter as the warehouses of distributors had adequate stocks.
Tana outlined that in the company’s main market which is CARICOM, Blue Power has been faced with intense competition which resulted in a lower level of export sales.
He said the company has hired a sales manager who is expected to improve domestic sales and provide better coordination for export sales.
The company is also exploring the avenues for the introduction of new products, Tanna said. The company had cash and cash equivalents of $135.5 million at October 2020, compared to $177 million a year before.