The Wisynco Group reported profit of J$2.93 billion, a 28% increase for the year ended June 2019.
The Jamaican-based manufacturing and distribution company’s net profit jumped from J$2.29 billion to J$2.93 billion, J$636 million more than the previous review period.
Overall revenue increased to J$28.4 billion versus J$24.5, an approximately 15% rise, for the previous review period.
The improved performance translated to its showing on the Jamaica Stock Exchange (JSE) which saw its stock price increase by 96% from $9.68 to $18.98. “This resulted in a near $35 billion rise in market capitalisation to just over $71 billion,” its audited financials stated. When Wisynco listed on the JSE in December 2017, its shares were valued at $7.87.
Additionally, the financial year saw record breaking performance for the Group, resulting in $28.4 billion in sales, an increase of 15.8%. “The increased revenues translated to higher gross profits of $10.5 billion, up from $9.1 billion a year earlier,” the company said.
” The average Jamaican consumes a Wisynco product at least once each day, the company claims.”– Wisynco
Meanwhile, operational expenses grew as selling and distribution costs increased 13% to $6.1 billion while administrative expenses grew 14.7% to $1.1 billion. Finance costs remained largely stable at $230.2 million, its financials stated.
Further, this year Wisynco acquired a 30% stake in JP Snacks Caribbean Limited for a consideration of $586.2 million. The company is banking on extending JP Snacks’ strong distribution locally to the regional market. “The goal of this acquisition is to bring consumers locally and internationally, a wide range of innovative Caribbean snacks and tropical foods.”
What’s more, it added that during the financial year it gained the distribution rights in Jamaica for the sugar and spirits manufactured by Worthy Park Estate Limited, which grows and processes one third of the island’s sugar production.
Worthy Park is also involved in spirits with its Rum Bar brand. Wisynco, with its partnership, will act as the local distributor for Worthy Park’s sugar and spirits; approximately $2.1 billion in sales annually.
With the Government’s renewed focus on lessening the sugar content of drinks and juices, Wisynco, a chief player in the beverage market, launched a series of low and zero sugar added products. “Our consumers can also now enjoy reduced sugar in brands such as BIGGA soft drinks, Zero Sugar Coca-Cola and Sprite along with products from our WATA brand and our new Sparkling CranWATA which will also have new flavours added in the 2020 financial year,” said Chairman William Mahfood and CEO, Andrew Mahfood in their joint statement.
The average Jamaican consumes a Wisynco product at least once each day, the company claims.