Jamaica Producers Group has reported a fall in net profits despite a 6.7% improvement in revenue for its first quarter ending April 2, 2016.

According to the company Chairman, Charles Johnston, for the period, JP generated revenues of $2.2 billion representing an increase of 6.7% over the prior year.

He says gross profit was also up 6.4% relative to the prior year, however, net profit attributable to JP shareholders was $150 million compared to $175 million in 2015.

Johnston says the main driver of growth was the company’s Logistics & Infrastructure Division which saw earnings up 82% relative to the comparable period last year.

“For the First Quarter, the division’s earnings before interest and taxation were $180 million, up 82% relative to the comparable period last year. The earnings reflect strong performances from our logistics businesses with Kingston Wharves being the major overall contributor and JP Shipping Services – our UK-based freight forwarder — showing a significant improvement over the prior year”, he said.

Meanwhile, he says the results for the Food and Drinks division were not as profitable.

“JP Food & Drink earned First Quarter revenues of $1.9 billion, up 9.4% over the prior year. The division earned profits before financing and taxation of $39 million”, he said. “The earnings were down $7 million relative to the prior year entirely as a result of timing issues that saw the delivery of major coffee exports occur a few weeks later in 2016 than was the case in 2015”.

He says for the remainder of 2016, JP intends to seek to optimize the potential for greater synergy among its food businesses with the expectation that this will support both revenue growth and cost control.

Johnston says efforts will also be made to consolidate the group’s performance in the Logistics and Infrastructure business so that JP will be well positioned to capitalise on available opportunities.