Shareholders’ profit up 25% while revenue growth was 16% higher

Durrant Pate/ Contributor

The Jamaica Producers Group (JPG) delivered a solid 2022 financial performance ahead of its merger with PanJam Investment Ltd to form what would be Jamaica’s largest conglomerate, Pan Jamaica Group.

For the year ended December 31, 2022, JPG increased net profits attributable to shareholders by 25 per cent to J$2.3 billion and benefitted from a 16 per cent increase in revenues, which climbed to J$29.0 billion. JPG hiked dividends to shareholders by 20 per cent in 2022, having posted a consolidated profit of J$4.0 billion.

In commenting on the performance, Group CEO Jeffrey Hall shared that 2022 was another solid year for JP.

“We grew revenues by 16 per cent and increased shareholder profits by 25 per cent. The performance in 2022 underscored the value of diversification both by geography and by business line,” Hall said.

He explained that JPG’s European businesses overcame some of the challenges with consumer confidence arising from the war in Ukraine while its shipping and logistics businesses performed particularly well. This occurred even as the food businesses had to grapple with the global commodity price inflation that the world experienced.

Hall boasted about JPG’s success in 2022 from its ability to profit from acquisitions.

“We saw the benefit of our acquisitions in logistics through the acquisition of Geest Line and Miami Freight & Shipping but also, we brought onto our books gains associated with our transactions in the Dominican Republic, in food manufacturing,” he stated.

JP Food & Drink

JPG’s Food & Drink Division is the largest contributor to Group revenues and earned revenues in 2022 of J$17.0 billion, an increase of 17 per cent relative to the prior year. The F&D Division comprises JPG’s portfolio of subsidiaries that are engaged in farming, food processing, distribution and retail of food and drink, and has production facilities in Europe and the Caribbean, and operates a distribution centre in the United States.

The range of specialty food and drink products includes fresh juices, tropical snacks, fresh fruit, water products and Caribbean rum and spirit-based baked goods. A.L. Hoogesteger Fresh Specialist B.V. 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, Switzerland and Italy. It operates a joint venture fresh juice manufacturer in Spain.

JPG reported that businesses within their F&D Division have significant opportunities to grow their trading relationships in general retail and grocery, food service, hospitality and travel retail.

JPG Logistics & Infrastructure

JPG’s Logistics & Infrastructure Division, which accounts for the major share of the Group’s net assets and profits was the star performer. In addition to Kingston Wharves Limited, the Division’s largest subsidiary, which operates a multipurpose port and logistics hub, also comprise JP Shipping Services Limited.

JP Shipping Services operates logistics and freight forwarding services between Caribbean ports and the United Kingdom. The results for this Division also reflect the Group’s interest in Geest Line Limited, their joint venture shipping line operating between Europe and the Caribbean.

Geest Line specialises in the transportation of refrigerated cargo to Europe and the movement of general cargo and vehicles to the Caribbean. The division generated 2022 profit before finance cost and taxation of J$4.3 billion from revenues of J$11.9 billion.