The Jamaica Producers Group (JP) closed out its financial year with increased revenue and profit that saw shareholders receive 48 per cent more over 2018.
According to JP’s audited results for the year ended December 2019, the company earned revenue of J$21.5 billion, up from $19.6 billion, and net profits of J$2.7 billion. The profit attributable to its shareholders was $1.2 billion, more than the $815,621 million they received over the same period of the prior year.
JP Group is an international food and logistics company with agricultural, manufacturing and marketing and distribution operations.
The improved performance was credited to increased revenues and profits in its two business segments, Logistics and Infrastructure and Food and Drink.
Logistics and Infrastructure accounted for the greater portion of the company’s assets, generating $3.3 billion in profit before finance cost and taxation. The result was a 20 per cent increase over the previous year. Further, revenues increases seven per cent over 2018, closing out the year at $8.8 billion, the company’s statement said.
It said “The Division continues to benefit from a series of initiatives to develop Kingston Wharves as a leading regional multipurpose and a multi-user terminal, and Newport West as a warehousing and logistics hub.”
Kingston Wharves is the Divisions largest subsidiary which also includes JP Shipping Services, which runs logistics and shipping services between Caribbean ports and the United Kingdom.
The Group’s other business segment, Food and Drink, generates the most revenue and earned profit of $774 million before finance cost and taxation, more than twice 2018’s results. Revenue for the division, which includes farming, food processing and distribution and retail of food and drink subsidiaries, jumped 11 per cent to $12.6 billion.
“The Division benefitted from a solid result in our European juice business. This was supported by improvements to our production capabilities with the launch of a new high-speed bottling line, and our new juice extraction and high-pressure processing lines which had their first full year of production.”
However, expenses grew year on year as selling, administrative and operating overheads increased from $3.5 billion to $3.85 billion.
Regarding its outlook, the company said it remains optimistic as it is structured to generate revenue from its diverse range of business lines and markets. The Group said its diversity is a strength which gives some resilience to its operating income.