Contract manufacturer JFP Limited has announced its expansion to the growing Guyanese market with the planned new brick-and-mortar store in the capital of Georgetown.
JFP has secured a new franchise further cementing its footprint with the new store in Guyana, which should be opened by early next year. The new store comes in the midst of emerging brands coming to the fore.
The company is reporting a rebound in its fortunes during the September third quarter to record a modest profit, despite the challenges being faced. In spite of this, the management is reporting that “business prospects remain favourable, as domestic and international remodels have grown within the hospitality and retail industry.”
Changing the business model
Discussions are underway to reshape JFP’s business model to allow for new product offerings, finishes and price point offerings all aimed at bolstering its financial stability. This strategic transformation will chart the course for sustainable profit margins, growth and expansion.
In addition, JFP’s partnership with the HEART Trust/NSTA has allowed for the placement of 12 students within its operation, who will undergo a six-month training programme. This initiative will allow them to transition seamlessly into the workforce fully equipped to contribute their skills and knowledge.
The company’s management is confident with its growth trajectory and financial outlook and its ability to improve our balance sheet while investing in its growth initiatives to provide healthy returns for our shareholders.
Combined three-quarter financial highlights
Despite revenue declining by two per cent during the combined three quarters in September 2023, the third quarter rebound, saw revenues being the highest it has been since the start of the year. Cost of sales increased by 13 per cent, which resulted in the same percentage loss in the gross profit.
There was a marked in JFP’s investment portfolio, resulting in a significant decline in losses, while administrative expenses declined by 12 per cent. The decline was due to reduced spending for expenses such as fixed asset repairs, secondary staff expenses and casual labour.
Selling and distribution expenses declined by 60 per cent, which was due to a reduction in sales-related commissions paid to external sales representatives. Year-to-date, JFP experienced a decline in sales and recorded revenue of J$263 million, representing a 20 per cent decline over the previous year.
Gross profit margin declined from 65 per cent to 53 per cent with the year to date losses on other income showing an improvement, resulting in an 18 per cent decline. Admin expenses went up by two per cent while selling and distribution expenses declined by 46 per cent.
This, resulted in a decline in sales over the same period last year. Profit declined by 169 per cent resulting in a net loss of J$30 million.