Manufacturing and distribution company Wisynco reported a decline in profit for the just-ended quarter.
In its unaudited financial report, Wisynco said net profit attributable to shareholders stood at J$580 million for the review period ended March 31, compared to J$694 million over the same period last year.
As a result of the decline, stock unit price declined to 15 cents compared to 19 cents for the comparable period.
Wisynco said the reduced performance over the quarter is partly attributed to its expenses which climbed 20 per cent to $2.1 billion, up from $1.7 billion.
The increased selling, distribution and administrative expenses were largely incurred by the additional needs for its increased revenue generation which it said can be curtailed with better management. It said measures have been implemented to drive down its non-essential expenditure.
Despite the impairment the company’s bottom line, revenue over the period increased 25.5 per cent, moving from $6.5 billion to $8.1 billion. However, the was largely reported prior to the announcement of Jamaica’s first coronavirus case on March 10, which has impacted its performance in the month due to the cancellation of sporting events, the tourism industry and the suspension of all entertainment activities.
That notwithstanding, Chairman William Mahfood and Chief Executive Officer, Andrew Mahfood, said revenue for April fell below original targets but was better than anticipated given the impact of the virus pandemic. “Expenses for April have been reduced and we anticipate this trend to continue for the remainder of Q4. As we head into May and June we should also see an uptick in demand for our higher Gross Margin beverages which should increase the overall Gross Margin back to 34-35 per cent from the low of 32 per cent in Q3.”
The executives also said the company is working to minimise the risk of exposure to the virus by its team and that new protocols, training and videos along with signage on being infected have been utilised.