Wisynco Group reported a 14 per cent decline in profit after tax in its audited financial statements for the year ended June 30, 2025, due to an increase in its finance costs and expenses related to its newly commissioned production line.

Despite earning $3 billion more in revenue, which capped at $57.7 billion at the financial year end, the manufacturing and distribution group reported $4.41 billion in net profit after tax compared with $5.19 billion a year prior.

The company’s revenue was boosted by a rebound in the final quarter, as Wisynco recorded its highest quarterly revenue of $14.7 billion.

“Generally, demand throughout the year was softer than expected. However, we did see positive signals in the final quarter, particularly with the improvement in the US Department of State’s travel advisory at the end of May 2025, which was welcomed and should lead to improved travel to Jamaica and therefore increased demand by the hotel and on-premise business establishments,” Chairman William Mahfood and CEO Andrew Mahfood outlined in their report to shareholders.

Impacts of business expansion

The directors also noted an improvement in their gross profit margins. However, they anticipate that costs related to the completion and commissioning of new product lines may have an impact on their gross profit margins.

The addition of new product lines also impacted the entity’s selling and distribution expenses, which increased year-on-year by 13.4 per cent to end the year a $12.16 billion, up from $10.64 billion in 2024.

“Our expense to sales ratio for the year was 25.3 per cent compared to 23.5 per cent last year due primarily to increases in our team members in our production, warehousing/distribution, and sales departments to support the business expansion activities,” the directors outlined.

Operating profit for the year amounted to $5.25 billion, or 11 per cent lower than the $5.91 billion reported last year.

With higher finance costs and lower finance income, Wisynco’s recorded a lower profit before taxation of $5.50 billion compared with $6.45 billion a year ago.

Explaining the increase in finance costs, the directors stated, “Interest income was $119 million lower than the prior year due to the use of cash reserves to fund the company’s expansions throughout the year however the expansion was refinanced by way of a new loan for $4.7 billion in May 2025 which replenished some of the cash advanced for the expansion project.”

Earnings per share for the year of $1.17 per share were 15.2% lower than the $1.38 per share of the prior year.

Wisynco grew its assets to $22.71 billion in 2025 compared to $16.29 billion at the end of the previous financial year.

Looking ahead, the directors are upbeat about opportunities to increase revenues after the completion of the company’s new product line. Additionally, ahead of the release of the financials, Wisynco inked a strategic partnership deal with Select Brands to acquire its manufacturing subsidiary Ringtail Bottlers Limited and with it a 30 per cent stake in Select Brands’ parent Ringtail Holdings Limited.

“We have largely completed our production growth initiatives and anticipate initiating warehouse expansion projects in fiscal [year] 2026. We will work diligently to capitalise on the opportunities that will present themselves both locally and in exports from all of the new capital assets installed,” the directors shared.