Grows revenues by 10% and profit from operations went up threefold to $58 million

Blue Power Group is exhibiting signs of financial improvement with a positive performance for its 2020-2021 financial year, where profit from operations went up threefold to $58 million, compared to $15 million in the previous year.

Total profits before tax for the under review year amounted to $134 million compared to $73 million in the previous year, showing an improvement of 84 per cent. After-tax profits for the year were $107 million compared to $59 million of profits from continuing operations in the previous year.

Blue Power Group earns its revenues primarily from the production and sale of soap for Jamaica and export markets, additional income from property rental and warehousing services, as well as management fees, interest and dividends.

For the 12-month period, May 1, 2020 to April 30, 2021 total revenue amounted to $534 million, an increase of 10 per cent over the $485 million realised in the previous year. The business generated export revenues of $132 million.

Financial contribution of Lumber Depot

Blue Power’s financial performance includes profit from the discontinued operations of its hardware business in Papine, St Andrew during the first quarter of the 2020-2021 financial year. The business was acquired with effect from August 1, 2019 by Lumber Depot Limited, a company in which Blue Power now holds a 16 per cent shareholding.

Blue Power experienced a substantial gain in the value of its shares in Lumber Depot, resulting in a gain of $202 million in other comprehensive income, achieving total comprehensive income of $308 million for the year. Accordingly, its shareholders equity increased during the year under review by 31 per cent to $1.26 billion.

Contesting lawsuit filed against Blue Power

The company reports that it is contesting the lawsuit filed against it and four agencies of the Government of Jamaica by Dominica Coconut Products Successors Limited.

The lawsuit seeks to restrain the Trade Administrator and the Trade Board from issuing Certificates of Origin to Blue Power and other soap manufacturers in respect of soap produced from soap pellets/noodles imported from outside of CARICOM and directing the Commissioner of Customs and Excise and the Jamaican Customs Agency to apply a 40 per cent Common External Tariff on all raw material soap noodles/soap pellets imported by Blue Power and other soap manufacturers from outside of CARICOM.

Blue Power has  engaged the services of an attorney to respond to the case noting that it, “values its role as a Jamaican manufacturer with over 20 years of experience producing soaps for local procurement of raw material and packaging from local, regional and international markets on competitive terms and without onerous duties. We understand that this position is generally consistent with the laws of Jamaica and Jamaica’s development goals and goals for its emerging manufacturing and logistics sectors”.

As such, the company is currently pursuing a number of avenues to improve its sales in the domestic and non-CARICOM markets while taking steps to regain its markets in CARICOM.