Durrant Pate/Contributor

The Pan Jamaica Group (PJG) is now reaping benefits from its amalgamation with the operating businesses of Jamaica Producers Group delivering strong financial results for the year ended December 31, 2023.

Both Jamaican corporate groups joined forces last year under the chairmanship of Stephen Facey.

The commendable financial performance demonstrated a year of substantial growth and strategic transformation, which contributed to consolidated net profits of J$3.7 billion, a 36 per cent increase along with significantly improved trading results. PJG results were generated from revenues of J$29 billion.

The growth was driven by strong performances across the group’s financial services, specialty foods, property and infrastructure and global services trading divisions. The froup reported a 143 per cent increase in the ‘Significant Total Asset Base’ to J$142 billion, and J$6.2 billion in increasing ‘Earnings Before Finance Costs and Taxation’, an 84 per cent increase since the last financial year. 

Strong performance across all divisions 

The largest contributor to the revenue of the group was the ‘Specialty Foods Division’, most notably their European juice group operations, represented by the umbrella organisation, The Juicy Group. The division earned revenues for the year of J$16 billion with a breakeven profit before finance costs and taxation of J$3 million relative to earnings of J$93 million for the prior year. 

‘Financial Services’ reported a profit before finance cost and taxation of J$4.3 billion in 2023, a significant increase of 51 per cent compared to the prior year result. The division performed very well and experienced strong sales and earnings growth; a benefit from its diverse business platform across the financial sector and its market-leading position in insurance services. 

The principal holding of the division, is a 30.2 per cent interest in Sagicor Group Jamaica, which is regarded as the leading life and health insurer, and pension fund manager in Jamaica. It also operates the largest local unit trust and has operations in investment banking, commercial banking, general insurance, and remittances. 

The ‘Global Services Division’ is a diversified, multinational logistics group with interests in business process outsourcing (connecting Europe, the UK, US, Caribbean and South America). It accounts for a significant share of the group’s net assets and, in turn, its profits. This Division earned profit before finance cost and taxation for 2023 of J$2.8 billion (compared to a loss of J$4 million in the prior year), on divisional revenues of J$9.1 billion. 

The group’s ‘Property and Infrastructure Division’ has developed and curated a premium real estate portfolio with interests in hotels, retail and food service properties, offices and development land. The P&I Division generated profit before finance cost and taxation of J$1.2 billion, an increase of 175 per cent relative to the comparable period in 2022. The results reflect improved occupancies and rate adjustments that led to increased revenues. 2023 revenues of J$3.9 billion were up 55 per cent over the prior year.

In his address to shareholders at Thursday’s annual general meeting, group CEO and vice chairman, Jeffrey Hall shared the company’s future outlook following a successful amalgamation.

“We expect that there will also be an important opportunity to rationalise our wider portfolio of interests in order to focus our resources on those businesses that give us a real competitive advantage, scale and can generate the highest and most consistent returns for shareholders. This will be an immediate as well as medium-term priority of the management of the group. PJG has evolved into a multinational conglomerate with a diverse portfolio of businesses.”

For his part, chairman Stephen Facey reiterated the mission moving forward, “Our mission at Pan Jamaica Group is to build upon our Jamaican heritage, forging a path of global leadership and sustainable success across diverse industries. Grounded in our core values, we are committed to our guiding principles: local roots with an international outlook, a transformative force, architects of the future, and good people to work with.”