Durrant Pate/Contributor

Jamaican manufacturer Berger Paints has seen its net profit for the half year of 2022 surge by 111 per cent to total J$21.30 million compared with J$10.08 million reported during the corresponding period in 2021.

Profit before tax for the June quarter came out at J$1.82 million, marginally up from the J$1.80 million reported in 2020. There was a taxation charge of J$3.23 million for the six months ended June 30, 2022 relative to a taxation charge of $105,000 for the corresponding period last year.

Pre-tax profit for the half year in review amounted to J$24.53 million, relative to profit before tax of J$10.19 million recorded for the comparable period in 2021. Total revenue for the period under review was J$1.39 billion, representing a 10 per cent increase relative to J$1.26 billion reported for the comparable period in 2021. 

Factors driving profitability

The management has credited among the factors driving profitability, “Our long-term strategies whilst maintaining focus on talent development, being customer-centric, community development and driving strong financial and operational performance. There is general recovery in the economy which augurs well for the outlook of the company and built on the strategic foundations now in place, management is poised and committed to delivering a strong H2 performance.”

Raw materials and consumables used for the period totalled J$842.28 million, an increase of 14 pe rcent relative to the J$737.20 million booked in 2021. ‘Changes in inventories of finished goods and work in progress’ closed the period at J$84.41 million compared to J$146.84 million in 2021.

Berger Paints reported other income of J$12.54  million, down from the J$31.17 million reported last year. Depreciation costs totalled J$34.56 million (2021: J$36.04 million).

Other financial highlights

Manufacturing expenses totalled J$25.17 million (2021: J$27.32 million), an eight per cent decline year-over-year. Employee benefits expenses decreased five per cent to J$272.33 million (2021: J$285.59 million).

Other operating expenses decreased 16 per cent to J$290.18 million relative to the J$344.91 million recorded in 2021. Berger Paints, as at June 30, 2022, recorded total assets of J$2.361 billion, a decrease of 0.1 per cent when compared to J$2.363 billion recorded last year.

This decrease was attributable to an eight per cent decrease in ‘Inventories’ which fell from J$1.14 billion in 2021 to J$1.05 billion in 2022. Total stockholders’ equity as at June 30, 2022, closed at J$1.32 billion, a 14 per cent increase from J$1.16 billion for the corresponding period last year.

This resulted in a book value per share of J$6.16 compared to the value of J$5.41 as at June 30, 2021.