Revenues up 20%, profits up 37%

Jamaica Producers Group reported strong performance and results for the 39-week period ended October 1, 2022 (Q3).

The Group earned consolidated net profits of $2.7 billion from revenues of $21.6 billion and increased revenues by 20 per cent over the prior year, with sales and earnings growth in both their business segments – Logistics & Infrastructure (L&I) and Food & Drink (F&D).

The L&I Division is a diversified multinational logistics group and accounts for the major share of the Group’s net assets and, in turn, its profits. The F&D Division is the largest contributor to the overall revenues of the Group. Year-to-date net profit attributable to shareholders was $1.5 billion, an increase of 37 per cent over the prior year.

Group CEO Jeffrey Hall shared: “JP’s 37 per cent earnings growth was achieved despite the global challenges and uncertainties. The resilience comes from our diverse business lines, strong management team and international footprint. We built it this way.”

The L&I Division is a diversified, multinational logistics group and accounts for the major share of the Group’s net assets and, in turn, its profits. The Division includes the Group’s interests in port terminal operations, warehousing and third-party logistics services (Kingston Wharves Limited), freight consolidation and forwarding (JP Shipping Services and Miami Freight & Shipping) and liner services (Geest Line). The Group’s logistics services all have a Caribbean connection but collectively serve a wide range of global markets. The L&I Division generated profit before finance cost and taxation for the 2022 Q3 Year-to-Date of $3.2 billion, a 16 per cent increase over the prior year. Divisional revenues of $8.8 billion were up 21 per cent over the same period in the prior year.

EARNINGS INCREASED 18 PER CENT

The Food & Drink Division earned profits before finance cost and taxation for the Q3 Year-to-Date of $442 million on revenues of $12.8 billion. Relative to the prior year, earnings increased 18 per cent while revenue increased 19 per cent. The F&D Division comprises our portfolio of businesses that are engaged in farming, manufacturing, distribution, and retail of a wide range of food and drink. The Division has production facilities in Europe (the Netherlands and Spain) and the Caribbean (Jamaica and the Dominican Republic) and operates a distribution centre in the United States. JP Farms business continues to lead in banana and pineapple production in Jamaica.

The division also provides a range of specialty food and drink products including fresh juices, tropical snacks, frozen foods, fresh fruit and rum and spirit-based baked goods. A.L. Hoogesteger Fresh Specialist B.V. (Hoogesteger) is the largest contributor to the revenues and profits of the Division. This business is a market leader in fresh juice in Northern Europe and serves as a co-packer of juice for major supermarket and food service entities in The Netherlands, Belgium, Scandinavia and Switzerland.

The Group views the diversity of their business structure and operations as a strength. The Group’s strategy will continue to build on their core business capabilities in Food & Drink and Logistics & Infrastructure through active engagement and strategic alignment with key customers, efficiency enhancing capital investment projects and selective acquisitions.

Based on the Group’s acquisition strategy, they will continue to seek other logistics services that support trade with the Caribbean, and Food & Drink businesses in markets that present definite new growth opportunities for the Group.

Hall noted: “JP’s acquisition strategy is now tested. Our team is able to close deals at good values and then drive real operating performance. Our Q3 results show that the approach is delivering for shareholders.”