Jeffrey Hall, Chief Executive Officer of Jamaica Producers Group
Jamaica Producers Group records strong performance for the first six months of 2019. Year-to-date profits attributable to shareholders are up 52% relative to 2018. Shareholders’ equity increased by $1.4 billion or 11% since the start of the year. Both of JP’s business segments – Logistics & Infrastructure and Food & Drink divisions generated significantly improved second quarter and year-to-date revenues and profits relative to 2018.
According to Mr. Jeffrey Hall, Chief Executive Officer of Jamaica Producers Group (JP), “Jamaican businesses and policymakers will need to rapidly adjust to an uncertain global economic environment. The business outlook for the next eighteen months must account for volatile global exchange rates and major changes to the trade rules affecting China, Europe, and the UK, the United States and other parts of North America.”
JP is positioning itself to identify growth opportunities in the new environment. “In Jamaica, these will come from value-added services in logistics and manufacturing that take advantage of Jamaica’s access to global consumer markets,” said Hall.
During the second quarter, the JP Logistics & Infrastructure division, which includes Kingston Wharves Limited – JP’s largest subsidiary by assets, and UK-based freight forwarder, JP Shipping Services, accounted for a bulk of the group’s assets and profits.
During the review quarter, Kingston Wharves benefited from growing volumes of project cargo as well as bulk, breakbulk and automotive shipments to Jamaica and the region.
Meanwhile, the JP Food & Drink division made a significant contribution to JP’s overall revenue, which increased by 11 percent during the quarter to $5.4 billion, up from $4.8 billion in the comparative quarter. The division earned year-to-date 2019 profits before finance cost and taxation of $438 million, a 48 percent increase on the prior-year result of $296 million.
JP completed the sale of 30 percent of JP Snacks Caribbean Limited, the holding company for the JP snack food operations (which includes the JP St Mary’s brand) to Wisynco Group during the quarter.
As a part of this deal, Wisynco was appointed the exclusive distributor for JP St Mary’s snacks in Jamaica.
Under International Financial Reporting Standards, the gain associated with the sale of shares in JP Snacks Caribbean Limited to Wisynco is directly credited to JP shareholders’ equity and is not reflected in the results shown in the Group Statement of Profit or Loss.