Durrant Pate/Contributor

Plastic goods manufacturer, Omni Industries, has strengthened its growth momentum in the face of persistent global and local headwinds.

The company delivered a commendable second-quarter performance, ended June 30 with revenues up eight per cent to $517 million, up from $478 million in 2024, as a result of increased sales volumes in its core construction-related product lines, which accounted for 58% total revenue. Net profit, climbing by a whopping 68% for the quarter, surged to $52 million, resulting from effective cost containment and improved operational efficiency.

Gross profit for the period under review rose to $224 million, a 3% increase over the comparative quarter, with Cost of Goods Sold (COGS) amounting to approximately $293 million. Operating profit reached $60 million, a 4% increase owed to operational efficiencies from new manufacturing equipment and refined processes.

YTD performance was not as spectacular 

However, the Year-to-date (YTD) outturn was not as spectacular due to a less-than-par first quarter performance. YTD revenue declined by eight per cent while net profit went up 24%, largely due to global shipping disruptions. 

However, the company reports that its strong Q2 results mark a solid step forward. Receivables increased in line with higher sales, supported by prudent credit risk management, while trade payables dropped by 25%, signalling improved cash flow and supplier relationships.

The spectacular second quarter performance comes against the backdrop of the ongoing global logistics disruptions, new tariffs in major markets and higher import costs linked to foreign exchange volatility. Locally, the Jamaican economy remained moderately positive, with construction and manufacturing registering modest growth. 

However, although there was a 6.3% increase in COGS YTD at $690 million, Omni’s overall YTD results were impacted, as it reported an 8% decline in net profit to $82 million and a 19% decline in gross profit at $405 million, primarily due to global shipping disruptions.

Manoeuvring adverse market conditions

The company manoeuvred these conditions by temporarily sourcing raw materials from non-traditional suppliers, a move that increased input costs but ensured uninterrupted production and consistent supply to customers. As a result, Omni maintained a strong balance sheet with capital investments in plant upgrades, improved liquidity, and a growing equity base, supported by the Junior Market tax incentives that remain in place until 2029.

For the quarter, liquidity improved with a current ratio of 2.93:1 compared to 2.32:1 at the end of 2024. Shareholders’ equity closed the quarter at $1.009 billion, an increase of $82 million since December. 

The company expects steady demand in construction and industrial markets in the coming months and plans to continue investing in technology, capacity, and operational efficiency to enhance its competitiveness.

Advancing operations for long-term growth

Managing Director Patrick Kumst described the results as evidence of a business model built to withstand volatility, saying, “This quarter’s performance really spotlighted the commitment of our team and the strength of our strategy. We remained focused on cost management while investing in the technology and capacity needed for long-term expansion. Even while facing supply chain pressures and inflation, we ensured that we delivered on our commitments to customers and shareholders.” 

The second quarter was marked by several operational milestones, such as the commissioning of a new injection moulding machine that increased throughput and precision, contributing to efficiency gains and product quality improvements. Omni’s presence at the 2025 Jamaica Manufacturers’ and Exporters’ Association Expo generated new business-to-business leads and increased its engagement with partners in Jamaica and the wider Caribbean.

“The integration of our new machines, the connections we made at the JMEA Expo, and our investment in capacity are steps towards ensuring Omni can become a stronger, more competitive manufacturer in the region. We’re getting there bit by bit and, by the next decade, we intend to stand among the region’s leading manufacturers of thermoplastics and distributors of PVC pipes and fittings,” Kumst said.