With cash and investments totalling $591 million as of January 2025, Blue Power Group plans to invest in developing land adjacent to its downtown plant on Victoria Avenue in Kingston. The project, supported by additional financing, aims to expand manufacturing capabilities and diversify revenue streams through real estate development.
"We have finalised plans to develop land adjacent to our core operations, enabling future plant expansion and the construction of commercial buildings to contribute to our rental and investment income," stated chairman Chairman Jeffrey Hall.
Details of the Blue Power's growth plans accompanied the company's recent financial results, which saw the bath and laundry soap maker, report flat revenues of $219 million for its third quarter ending January 2025. Challenges squeezed the company's quarterly net profits, resulting in a decline to $14 million compared to $50 million in the same period last year.
For the nine months ending January 31, 2025, the company generated $101 million in profit, reflecting a 15.8 per cent decline year-over-year. The results highlight the challenges posed by rising shipping costs, increased commodity prices, and the impact of CARICOM trade rules, which now impose a 40 per cent duty on the input cost of making soap.
Despite these hurdles, Blue Power achieved an 11 per cent year-to-date revenue growth, underscoring its resilience and strong market position.
Hall acknowledged the challenges but outlined strategies to mitigate the impact.
"We will address the compressed margins by securing price increases and implementing initiatives to drive volume growth through innovation and enhanced marketing in collaboration with our key customers and distributors," Hall said.
Additionally, Blue Power’s investment in Lumber Depot Limited, an associated company, performed satisfactorily during the period, further bolstering its portfolio.
Looking ahead, the company remains optimistic about its competitive position and growth prospects in Jamaica, while exploring opportunities for diversification through strategic investments in related industries.
“We continue to be optimistic about the competitive position and growth prospects for our business in Jamaica, as well as the opportunity to develop new markets,” Hall added.
