Durrant Pate/Contributor

Hotels and wholesale food and spirits distributor Caribbean Producers Jamaica (CPJ) is crediting its strategic pivot into retail distribution for insulating the business from the softness of the hospitality sector in the wake of Hurricane Melissa.

The impact of Hurricane Melissa on Jamaica’s tourism sector, from which CPJ gets most of its business, has been significant, with approximately 40%–45% of hotel rooms temporarily closed after the October 28, 2025, storm as properties undergo rebuilding and renovation. 

In response, CPJ has accelerated its strategic pivot into the retail distribution segment, where the company is now seeing encouraging momentum, expecting this channel to deliver strong growth and partially offset hospitality softness in the near term. 

Immediate imperatives 

The Montego Bay-based CPJ remain confident in the resilience of Jamaica’s tourism industry and anticipates a meaningful rebound beginning in the final quarter of the year. Looking ahead, company Chairman, Richard Pandohie and Director, Stephen Dear, listed the company immediate imperatives as: 

• Margin optimisation and cost discipline
• Strengthened working capital management 
• Strategic regional expansion
• Deleveraging and disciplined capital allocation 
• Delivering sustained shareholder value 

They note that CPJ’s integrated supply chain, diversified product portfolio, and strengthened regional partnerships position the business to capitalise on market recovery and continue expanding across hospitality, food service, and retail distribution channels. 

Financial performance highlights 

CPJ delivered strong top-line growth during the half-year ended December 31, 2025, generating gross operating revenue of US$152.06 million, up from US$80.15 million for the comparative period in 2024. Revenue performance was driven by: 

• Sustained customer demand across hospitality and retail distribution segments. 
• Continued expansion in Jamaica, our largest market. 
• Improved performance in St. Lucia; and 
• A broader and more diversified product portfolio. 

Home country, Jamaica, contributed approximately US$119.38 million in external revenue, while its St. Lucian subsidiary contributed US$33.85 million, underscoring the growing importance of its regional footprint and diversification strategy. 

Gross profit for the period under review totalled US$39.65 million, reflecting higher volumes and disciplined margin management initiatives. Operating profit increased to US$16.11 million, supported by improved operating scale and a net gain within other operating income related to insurance proceeds from Hurricane Melissa claims. 

Pre-tax closed on US$11.85 million, while net profit attributable to shareholders amounted to US$8.24 million.