Businessuite 2017 Top JAMAICA CEO Junior Market – Dr. David Lowe Chief Executive Officer of Caribbean Producers (Jamaica) Limited
|Chief Executive Officer||Company||2016/17||2016/17||2015/16||2015/16||change|
|Dr. David Lowe||Caribbean Producers Jamaica Limited||$2,589||$1,051||146.34%|
Dr. David Lowe was appointed Chief Executive Officer of Caribbean Producers (Jamaica) Limited in June 2016. He originally joined CPJ as the Vice President of Marketing and Retail Sales before being promoted to Chief Revenue Officer. Dr. Lowe makes day-to-day management decisions to lead the financial, operational and strategic operations of the company. Previously, Dr. Lowe has held distinguished positions in investment banking, management consulting and government. He currently serves as a board member of the National Health Fund and Chairman of the Western Region Health Authority (WRHA) and the National Compliance Regulatory Authority (NCRA). Dr. Lowe received his Ph.D in Corporate Finance from the Manchester Business School, University of Manchester, UK.
Caribbean producers (Jamaica) limited: A proud History This year, the company celebrates its 23rd year of service to its hospitality and retail trade customers. CPJ is the purveyor of choice for food, non-food, beverages, wine and spirits as well as the leading manufacturer of meats & juices sold both locally and throughout the Caribbean. Company headquarters are located in Montego Freeport, St. James. This main hub of the distribution and manufacturing sector of the business encompasses 125,000 sq. ft. of refrigerated and dry warehouse, office and manufacturing space. In addition, there are an additional 20,000 sq. ft. of satellite warehouses, including a private bonded warehouse. CPJ has been manufacturing juice concentrate and slush specifically for the hotel industry since 1999, expanding to retail trade under the Cariburst® brand thirteen years later.
The company listed on the Jamaica Junior Stock Exchange (JSE) on July 20th, 2011, in line with its vision to expand into new ventures and markets. In 2012, CPJ opened CPJ Market, Deli and CRU Bar + Kitchen in Kingston. CPJ began processing and distributing its own branded meat products including hamburgers, sausages, bacon and ready-to cook pork products in 2013. In 2014, the company formed CPJ St. Lucia, a joint venture with the Duboulay family, former owners of the Duboulay Bottling Company. CPJ St. Lucia began operating a 25,000 sq. ft. warehouse in Castries as a food service distributor, selling products, including produce, primarily to the St. Lucian tourism sector.
Today, CPJ exclusively distributes internationally renowned wine and spirit brands, such as Rémy Cointreau, Yellow Tail, Concha y Toro, Francis Ford Coppola and Jackson Family Wines, Jack Daniels, Patron, and the full range of Bacardi products including Grey Goose and Dewar’s
White Label. In the beverages category, CPJ distributes premium beverages Bellot and Fiji Water island-wide. Lifespan water, exclusively distributed by CPJ, has been well-received in local trade, gaining significant market share. Kerrygold is a key food brand for CPJ, as its cheese and butter products build a strong reputation in the cold box of retail trade.
YtD Results Gross operating revenues for on and offshore operations combined grew by US$4.2M (4.4%) from US$94.1M to US$98.3M. The increase in cost of operating revenue was significantly less by US$2.2M (3.1%), which resulted in a notable growth of US$2.0M (8.1%) in gross profit. The increase in gross profit is dueto greater market share in key product categories and a better pricing strategy implemented in a stable economy.
CPJ has employed various cost-control strategies across all business segments with positive outcomes. Gains in operational efficiencies resulted in marked improvements in supply chain and warehousing practices. There was a notable reduction of US$ 0.2M (1.0%) in selling and administrative expenses from last year, decreasing from US$20.2M to US$20.0M. This positive trend was offset by an increase in depreciation of US$0.2M, due to additions to capital assets required for operational efficiency. Operating profit increased by US$2.1M (80.9%) when compared to the previous fiscal year, ending at US$4.6M. Financial cost decreased by US$0.09M (5.0%), primarily as a result of focused treasury management onshore. The company completed its sixth year listed on the Jamaica Junior Stock Exchange and as such, is now liable for corporate income taxes. Accordingly, a tax provision of US$0.27M was recorded. The net profit of the company increased from US$1.1M to US$2.6M, a 146% increase compared to the corresponding period last year.
CPJ’s financial position has strengthened compared to the previous fiscal year. Favourable movement can be attributed to the reduction of short-term loans and short-term promissory notes of US$2.6M (51.0%) and US$0.7M (13.1%) respectively. Conversely, this positive trend was offset by a reduction in cash and cash equivalent of US$1.2M (31.0%) and slight increases of US$0.7M (6%) and US$0.4M (1%) in accounts receivable and inventory, respectively. Total assets decreased by US$1.2M (2.2%) from US$55.8M to US$54.6M. Total liabilities decreased by US$3.8M (10.6%). Non-current assets decreased by US$1.1M (7.9%) due to the disposal of fully depreciated assets in property, plant and equipment.
Extracted from Caribbean Producers (Jamaica) Limited 2017 Annual Report
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Caribbean Producers Jamaica Limited (CPJ) made a near-250 per cent turnaround in the first quarter ending September, having turned a US$315,650 loss into a profit of US$463,346. CEO David Lowe, who was handed the helm of the company 18 months ago, sees the results as a vindication of the ongoing restructuring programme that he has been insistent would pay off for the Montego Bay-based business. The results continue to build on the company’s full-year results, ending June, 2017, when CPJ saw a marginal uptick in profit from US$2.52 million from US$2.59 million.”The restructuring of the business, which began at the start of my first year as CEO, in July 2016, resulted in a strong profit recovery. The restructuring was part of a business transformation to achieve greater efficiency and growth in the future,” Lowe said on Wednesday.