Jamaica’s leading manufacturer and distributor of PVC pipe and fittings, OMNI Industries, is reporting a sizable decline in both revenues and profits for the first quarter, ended March 31, 2025, as it had no large export order for the period.

For the review period, revenues fell to $471 million or 22% while net profit shrank 60% to $30.6 million. OMNI’s Managing Director, Patrick Kumst, explains that the decline was expected, given that “last year’s first quarter included a one-off export order that significantly boosted our revenues and profits at the time”. He added, “That order was not repeated this year, so a dip in profit was expected.”

However, core operations remained profitable, generating $181 million in gross profit and $37 million in operating profit, with earnings per share closing the quarter on $0.012. During the period, the company, which is also involved in the manufacturing of industrial packaging, garden hose and other plastic items, reduced operating expenses by 11% to $152 million. 

Savings were achieved through lower maintenance and administrative costs, aided by improved production reliability and tighter general overheads. 

Considerable management of cash flow

These gains were partially offset by haulage costs and depreciation linked to recently commissioned machinery. One of the strongest signals of underlying performance came from cash flow, where net cash generated by operations surged to $98.8 million.

This is nearly nine times higher than the $10.7 million recorded in Q1 2024, and a marked turnaround from negative operating cash flow at year-end. This liquidity boost enabled OMNI Industries to reduce trade payables by 24% and long-term loans by 6%. 

Capital investment continued during the quarter with property, plant and equipment rising by 6% to $470 million, stemming from the commissioning of a new injection moulding machine and the shipping of another for installation later this year. The company says these upgrades will improve output consistency and reduce production downtime.

Inventory levels fell by 14% to $701 million while receivables declined by 11% to $345 million. Both shifts point to stricter working capital management and improvements in order fulfilment cycles. OMNI closed the quarter with a current ratio of 2.62:1, up from 2.32:1 in December 2024.

Strategic transformation

Meanwhile, shareholders’ equity grew by $31 million to $958 million, supported by retained earnings. The management is confirming that profits continue to be reinvested into areas critical to the company’s strategic transformation: operational efficiency, export-readiness and capacity expansion.

According to Kumst, “we’ve made meaningful progress this quarter, tightening our operations, improving cash flow, and advancing our regional expansion, which includes Guyana and active discussions in other markets across Latin America and the Caribbean, such as Barbados and Nicaragua.” The company’s outlook for the remainder of 2025 focuses on capital deployment, debt reduction, retooling, regional expansion, and market-specific product development.