Business
JM | Nov 18, 2020

Berger Paints coming out of decline with profit jumping by 524%

/ Our Today

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Berger Paints’ head office in Kingston.

Berger Paints is turning the corner, posting good September quarterly results with profits up by a massive 524 per cent.

During the quarter, Berger earned pre-tax profits of $57.6 million, which represents the 524 per cent increase when compared to the corresponding period in 2019. This out turn is remarkable given the challenges encountered by the company with COVID-19.

Through the deployment of creative revenue generation strategies and focused channel management, Berger, which is listed on the Jamaica Stock Exchange, managed to achieve growth in revenue to $574 million.

Revenues for the comparable quarter in 2019 were $534 million.

Berger is anticipating an even better revenue out-turn with the peak Christmas season coming up. Company Chairman Adam Sabga reports that, “with peak season upon us, we project that these efforts would present similar positive results into Q4”.

Operating expenses for the quarter totaled $260 million, which is nine per cent below the $287 million for the corresponding quarter last year. This represents a decrease of $27 million.

EFFICIENCY DRIVING DECLINE IN OPERATING EXPENSES

The decrease in operating expenses resulted from management’s deliberate measures at improving efficiencies throughout the operations, reducing risk factors and containing costs.

Adam Sabga, chairman of Berger Paints.

Sabga advised shareholders that the “COVID-19 pandemic continues to impact the market and there remains uncertainty as to how the business will be impacted into the near future. However, management’s insistent focus on maintaining business continuity and a committed drive to deliver on our strategic agenda will ensure that Berger endures through these challenging times, and be powerfully positioned for the future”.

The Berger Paint chairman pointed to the recently deployed Enterprise Resource Planning (ERP) system, which has settled and has been providing management with key insights to allow for deeper appreciation of the business drivers and, with that, quicker decision making. Although the system is a relatively new deployment, it is already contributing value to the business.

Sabga was pleased to report that through stringent health and safety protocols and driving a powerful safety culture throughout the organisation, Berger has not had any reports of COVID-19 infection in any member of its team nor within the organisation.

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