Lighting and energy company FosRich Jamaica Limited reported net profit of $75.2 million made on revenues of $1.39 billion for the nine month period ended September 30.
This compared to the $73.3 million reported for the prior reporting period and made on revenues of $1.186 billion in the prior period
Cash used in investing activities has tripled year over year from $50 million at September 2019 to $174 million at the end of nine months.
The company is increasing distribution capacity and pursing other new lines of business in preparation for the future.
Construction of a new distribution centre at 76 Molynes Road in St James, Jamaica has started and should be completed and ready for occupation by February 2021, management outlined.
Meanwhile, FosRich has set up a new company, Blue Emerald Limited which is to be registered under the Special Economic Zone Authority, in order to take advantage of long-term tax concessions.
Activities are also being undertaken at a new Hayes facility in Clarendon, which will be done through this newly registered entity acting exclusively for FosRich under a contract manufacturing arrangement.
FosRich also said it has reached an agreement with the Jamaica Public Service Company with a view to take over their pole-mount transformer repair activity.
The company has begun the process of sourcing the necessary equipment and factory build-out has started. Management said that they hope to be “up and running by the end of December 2020.”
They continue to monitor the changes in the purchasing patterns of customers resulting from the presence of COVID-19, and have adopted purchasing patterns and reviewed cost structure.
Management indicated that sales in most categories were less than anticipated, this due to the uncertainties which resulted from the COVID-19 pandemic, which affected customers buying patterns.
It added that as a result of the anticipated impact of COVID-19 on customers, there have been reviews of all credit arrangements and, where necessary, credit limits have been reduced and credit periods shortened.