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Executive Chairman & Interim CEO of Caribbean Producers (Jamaica) Limited Mark Hart (Photo: CPJ)

Caribbean Producers credits strong sales for 300% profit

Executive Chairman & Interim CEO of Caribbean Producers (Jamaica) Limited Mark Hart (Photo: CPJ)

Caribbean Producers Jamaica (CPJ) has reported that “strong sales” from its local and overseas operations have pushed net profit before tax to 300 per cent.

For three months ended December 31, 2019, profit before tax stood at US$937,977 when compared to US$233,922 reported in the same period a year prior.

According to Executive Chairman & Interim CEO Mark Hart, “CPJ Group, after recording strong sales in Q1, continued the trend in Q2 of the current fiscal year. The group reported robust revenues of US$32.38M, which is 10 per cent over Q2 of last year 2018/2019.”

CPJ Market on Lady Musgrave Road in Kingston, Jamaica.
(Photo: Caribbean Producers (Jamaica) Limited)

“For the month of December 2019, the company achieved record sales of over US$11M and earned profit before taxes of US$0.76M,” he continued.

When accounting for cost of sales, CPJ recorded gross profit of US$8.50 million.

Half-year results

“The robust growth in sales revenue and profitability for the six months augurs well for the group as we continue to make progress in improving our operational efficiencies, which should contribute to operating profits for the current fiscal year.”

— Executive Chairman & Interim CEO Mark Hart and Chief Financial Officer Vivek Gambhir

For the six months ended December 31, 2019, the company achieved revenue of US$59.5 million. This was US$5.7 million or 10.6 per cent more than the sales recorded in the same period a year prior.

Despite a 9.7 per cent increase in cost of sales, CPJ earned US$15.3 million in gross profit. When compared with US$13.5 million in the previous financial cycle, this reflected a 13 per cent increase.

Commenting on net profit, Hart, along Chief Financial Officer Vivek Gambhir, stated, “The group’s EBIDTA (earnings before interest, depreciation and taxes), for the first six months of the current fiscal year improved significantly when compared to the same period prior year, having increased by US$1.64M (98 per cent) to US$3.32M”

“The robust growth in sales revenue and profitability for the six months augurs well for the group as we continue to make progress in improving our operational efficiencies, which should contribute to operating profits for the current fiscal year,” they added.