Selling and distribution expenses climbing

Durrant Pate/Contributor

Food and spirits distributor Caribbean Producers Jamaica (CPJ) has delivered strong revenue performance for the September quarter, but has seen a sharp rise in costs.

During the quarter, revenues jumped 32 per cent to close at US$33.06 million compared to US$25.02 million for the same period last year. At the same time, cost of operating revenue rose by 35 per cent to US$22.83 million relative to U$S16.88 million in 2021.

The cost of operating the business has seen a marked increase, particularly in the area of selling and distribution expenses. Selling and distribution expenses shot up to US$6.17 million relative to the US$4.37 million posted last year.

Depreciation for the period fell by one per cent, closing at US$1.03 million (2021: US$1.04 million)

Marginal improvement in profitability

Net profit amounted to US$1.72 million relative to US $1.67 million in 2021. Taxation for the period was incurred at US$518,740, almost doubling the US$219,568 booked a year earlier.

Net profit attributable to shareholders ended the period at US$1.64 million, up from US$1.60 million in 2021. Earning per share for the quarter amounted to US$0.15 cents (2021: US$0.15 cents)

Finance costs was US$755,378 versus the $683,223 reported in 2021, an 11 per cent increase. As at September 30, 2022, total assets amounted to US$86.48 million, 20 per cent more than its value of $72.07 million booked a year ago.

This was mainly attributable to a 35 per cent increase in ‘Inventories’ which amounted to US$40.37 million (2021: US$29.83 million). Shareholder’s Equity as at September 30, 2022, totalled US24.79 million (2021: US$17.24 million), resulting in a book value per share of approximately US$2.25 cents (2021: US$1.56 cents).