Refocusing on the domestic market has proved a profitable strategy for soap manufacturing company Blue Power, which saw its bottom-line earnings doubling at the end of April.

The strategy has allowed the company to recoup revenues lost from the export market, following a ruling from the Caribbean Court of Justice that Blue Power cannot claim tariff-free sales due to the importation of its raw materials.

For the financial year ended April 30, the company recorded a total comprehensive income of J$173.26 million (FY 2022/23: $81.41 million)

“The Blue Power Group has made bold moves to expand its share of the Jamaican market and this has resulted in a 75 per cent growth in sales since 2020,” chairman Jeffrey Hall responded to an Our Today query. 

“Blue Power did this by expanding its plant and securing strategic relationships with some of the best distributors in the Jamaican market. We have also sought to offer good value products for the Jamaican consumer at the time when they needed it, and the Jamaican consumer has rewarded us for this,” he continued.

The company’s expansionary initiatives have redounded to “improvements in operating efficiency and competitiveness”, Hall told shareholders in his year-end report. Not only have plant and labour productivity increased, but Blue Power improved its supply chain and procurement performance and this in turn reduced raw material and logistics costs.

A three per cent dip in the soap maker’s revenues was offset by an even 22 per cent dip in the cost of sales. As a result, Blue Power Group’s gross profit for the year 2023/24 was $331.1 million compared with $209.74 million in the previous year.

Operating profit for the period under review more than tripled to $152.36 million, up from $49.93 million in 2023/24.

“With our improved operating performance, Blue Power Group now has a healthy business supplying the Jamaican market for laundry soap and a wide range of bath soaps including value-products, medicated soaps, anti-bacterial soaps, beauty soaps and natural soaps that include local ingredients and locally made formulations that support healthy skin. An important part of our plan for profitable business growth is our commitment to efficiency, innovation and customer development,” Hall informed shareholders.

“During the year we supported this with improvements to our procurement arrangements, quality systems, labour efficiency, production facilities and product lines. We remain hopeful that these improvements will allow Blue Power Group to remain competitive in the years ahead,” he added.

While expressing optimism for Blue Power Group’s future growth, the chairman pointed out that the company is exploring opportunities in new markets.

“In 2024 and 2025, Blue Power Group will be looking to the USA and for natural soaps for export growth,” he divulged to Our Today, adding that the manufacturer is keen on innovating in the bar soap category.

Further ahead, he said, the company plans to expand its portfolio with liquid soaps and detergents.

Blue Power Group’s total assets increased year over year from $628.17 million to $752.45 with improvements in its cash position and investments. The company also eliminated its loan facility with JN Fund Managers.