Jamaica Producers profit slides 45 per cent

Executive Chairman of Jamaica Producers Group (JPG), Charles Johnston, indicates that COVID-19 has affected the manufacturing and service cluster in diverse ways.

Jamaica Producers said it generated revenues of $9.5 billion.

Jamaica Producers generated revenues of J$9.5 billion and net profit attributable to shareholders of J$347 million for the six-month period ended June 27, 2020.

Year-to-date revenues were down six per cent relative to the comparable period in 2019 and shareholder profit declined by 45 per cent.

Johnston said “The performance of the Group was adversely impacted by the COVID-19 pandemic. The Group operates internationally and many of the countries in which the Group operates had their most severe health effects and lock downs associated with the pandemic during the reporting period.”

“Our food businesses have managed to maintain core sales to supermarkets for ‘take home’ consumption.”

– Executive Chairman of Jamaica Producers Group, Charles Johnston

The Logistics and Infrastructure Division generated a 2020 year-to-date profit before finance cost and taxation of J$1.3 billion from revenues of J$3.8 billion.

The segment includes Kingston Wharves Limited, JP Shipping Services Limited (which operates logistics and shipping services between Caribbean ports and the United Kingdom) and a 32 per cent shareholding in SAJE Logistics and Infrastructure Limited (a property and investment holding company).

Divisional profits before finance cost and taxation were down 16 per cent relative to the comparable period in 2019.

JP Food & Drink JP’s Food & Drink Division is the largest contributor to the revenues of the Group.

The Division earned year-to date revenues of J$5.8 billion, down three per cent relative to the first six months of the prior year.
Profits before finance cost and taxation for the Division were $116 million, compared to $438 million in the prior year.

The F&D Division comprises our portfolio of subsidiaries that are engaged in farming, food processing, distribution and retail of food and drink, has production facilities in Europe and the Caribbean and operates a distribution centre in the United States.

Johnston said that the COVID-19 pandemic “has had slightly different implications for each of our businesses and has affected their performance and the outlook for the remainder of the year in different ways.

“Our food businesses have managed to maintain core sales to supermarkets for ‘take home’ consumption. However, our sales to food service channels, convenience or roadside channels (in the Caribbean), travel retail and the hospitality sector were adversely affected in the second quarter.”

The executive chairman said although the company “maintained excellent service levels and robust supply chain management across all of our businesses, we incurred higher raw material costs, particularly in the global supply of fresh fruit for our European juice business.”

He stated that these challenges are likely to continue during the worst of the COVID-19 pandemic, “but we do not believe them to be permanent in nature, and we remain confident that our largest customers remain committed to our product offerings.”