Jamaica Producers Group Limited (JP) delivered strong results for its first quarter ending March 31, 2022, with revenues up 26 per cent and net profit attributable to shareholders up 58 per cent over the prior year.
Concurrently, JP earned consolidated net profits of $811 million from revenues of $6.9 billion.
JP stated that its business development strategy will continue to see it identifying other logistics services that support trade with the Caribbean as well as food and drink businesses in markets that present attractive growth opportunities.
The company increased revenues in both of its business segments – Logistics & Infrastructure and Food and Drink.
According to JP Group CEO Jeffrey Hall, “We resolved as a business to come out of COVID even stronger than we went in. We wanted this for ourselves, and we wanted it for Jamaica. Our goal was to turn setbacks into opportunities, and we did.”
JP’s Logistics & Infrastructure Division delivered strong results, with profit growth in the marine terminal operations and logistics services at its Kingston Wharves Limited subsidiary, as well as in JP Shipping which consolidates cargo in the UK for shipment throughout the Caribbean.
During the two-year period of COVID, the JP Group also strengthened its logistics business through acquisitions. In April of 2021, JP acquired a 50 per cent interest in Geest Line Limited. Geest has been in business for over 60 years and operates a fleet of ships that move refrigerated cargo as well as industrial and consumer goods and vehicles between the Caribbean, South America, and Europe.
In January 2022, JP acquired Miami Freight & Shipping Company which consolidates cargo in South Florida for shipment to the Caribbean.
“JP’s moves in logistics were impeccably timed. They are driving our earnings growth but are also building a diversified supply chain network that connects the region to the world.”
Over the two-year period since March 2020, JP also acquired Joint venture interests in CoBeverage Lab (a fresh juice business in Spain that allows the Group to expand its Netherlands-based fresh juice business into Southern Europe), and Grupo Alaska (a bottled water and ice business in the Dominican Republic, the largest consumer market in the Caribbean).
“We set out to expand the geographic base of our food and beverage businesses. The goal was to have a pan- European footprint in fresh juice and to have a strong consumer connection in the largest English language and Spanish language markets across the Caribbean. We achieved this goal,” stated Hall.
During the first quarter, the group also emphasized new product development in its food group with frozen fruit popsicles in the Netherlands, Tortuga Bourbon cake made with Alaska Birch syrup for the United States market and the Johnny Crunchers snack, an interpretation of traditional Johnnie cakes for the Jamaican snack market.
The JP Group indicates that it has the balance sheet strength to support its strategy. JP is a Jamaican-owned multinational business with shareholders’ equity of $18.3 billion and consolidated net cash and investments in marketable securities of $11.5 billion.