Durrant Pate/Contributor

Jamaican manufacturer Blue Power Group says intense price competition in the regional soaps market poses compounding challenges, so much so that it only managed to break even in the January 2026 quarter.

However, the Jeffrey Hall-chaired company managed to post a small year-to-date profit of J$46.5 million on revenues of J$585 million. The latest quarter results were impacted mainly by a J$11.8 million adverse swing to finance income, due to foreign exchange losses on US dollars, a fixed income investment portfolio and a J$4.8 million adverse swing to gross profit. 

The reduction in our gross profit resulted entirely from lost sales of certain value products within the company’s bath soap product line. These lower-cost products face intense price competition from sporadic informal imports that, in turn, affect Blue Power’s sales and the sales of its distributors and brand owners. 

Duty relief being sought

Hall advises shareholders in his third quarter report, “our ability to maintain market share in the particular category of low-cost value bath soap products has also been affected by CARICOM’s treaty framework, which results in the imposition of a 40 per cent duty on our most essential raw materials. That aspect of the treaty was clarified by the Caribbean Court of Justice in 2024, and this is the first full year of operations under this new adverse duty arrangement.”

In line with the treaty rules, Blue Power is now working with CARICOM to seek some relief from this duty, where raw materials are simply not available in the region in the quantity and quality required.

For the company chairman, ”This is an extremely important safeguard for the local manufacturing industry, and we understand that it is regularly and effectively applied across the region for precisely this purpose. We are also taking immediate steps to improve our operating efficiency in these low-cost product lines and to pass along the savings to our distributors and consumers to improve our overall competitive position.” 

The overriding long-term strategy is to bring to the market more innovative, higher value natural and plant-based soap products that are customised to consumer preferences. This strategy, Hall articulates, is now underway for both our private label customers and Blue Power’s own brands of bath soap. 

Offsetting losses underway

The increased sales in this premium product category have already partially offset the loss of sales of value products in the third quarter, with the management expressing optimism about further growth in the premium product category in the current fourth quarter. Importantly, Blue Power says it remains committed to its market-leading position in laundry bar soap and will undertake a similar product review and innovation pipeline for this product portfolio in the upcoming financial year. 

Balance sheet strong

The Blue Power balance sheet, investment portfolio, and liquidity remain strong, with the value of its cash and investments totalling J$530 million at the end of the third quarter. In addition, the company holds land that is adjacent to its core operations and is intended to allow for the expansion of its plant over time, as well as for the development of commercial buildings that can contribute in due course to our rental and investment income. 

As for the associated company investment in Lumber Depot, which is a material part of Blue Power holdings, the subsidiary performed satisfactorily during the period. In conclusion, the management reports that it continues to be optimistic about the competitive position and growth prospects for the business in Jamaica, as well as the opportunity to develop new markets.