Connect with us

Invest Jamaica

Inside Barita’s Proprietary Investment Strategy

Published

on

Mark Myers Chairman Barita Investments Limited (“Barita” or “the Group”) provide investors with an insight into their very successful investment strategy, as outlined in their recently released unaudited financial statements for the nine months of the financial year 2022.

Investment Strategy
Barita’s proprietary investment strategy has been characterized during the post-acquisition period by a focus on the pursuit of differential value through complementing our traditional business lines and exposures with a funding base containing lower than typical leverage and by making strategic allocations to alternative investments.

Low Leverage:
Between March 2019 and September 2021, Barita raised $34.5 billion in permanent equity capital between two (2) Rights Issues ($9.2 billion), two (2) Additional Public Offers (“APOs”) ($24.3 billion) and a Non-Redeemable Non-Cumulative Preference Shares ($1 billion). Our leverage of less than half the industry average and capital to risk weighted assets ratio of more than 4 times minimum regulatory requirments has served as a significant defensive feature in the face of several periods of market stress which have characterised the post-pandemic period. This has also positioned Barita well to take advantage of price dislocations which have also been a recurrent feature of the post pandemic period.

Allocations to Alternative Investments:
The period that has followed the economic and financial market downturn brought on by the 2008/2009 financial crisis has been characterized by a largely uninterrupted cycle of rising prices in most traditional risk assets driven substantially by the effects of unprecedented global monetary policy.

This situation has informed the pursuit of an investment strategy which attempts to complement the typical higher beta exposures provided by traditional assets with an allocation to specific segments of the alternative investment universe. We have defined the focus areas of our alternative investment strategy as spanning real estate, private credit, private equity and infrastructure.

Over the last 18 months, we have taken several foundational steps towards establishing a suite of portfolios/vehicles via which both Barita and the investing public can gain varying forms of exposure to the targeted asset classes in an efficient manner. This has involved the sourcing, evaluation, and selection of seed portfolio assets as well as the structuring of investment vehicles and the attendant seed funding thereto. The most advanced strategies across the four lanes in order of capital deployed are real estate, private credit and private equity with our infrastructure-based strategy expected to make more progress in FY2023.

Real Estate Strategy
During 03 FY 2022 we achieved a material milestone in relation to our real estate focused strategy as we offered access to the portfolio of prime real estate that we have been accumulating via the managed special purpose vehicle, MJR Real Estate Holdings Limited (“MJR”), to our clients via the Barita Real Estate Portfolio Unit Trust Fund.

MJR presently has over 1,900 acres of real estate in its pipeline for development. The entity’s strategy targets the acquisition of undervalued real property with clear opportunities for material value-add through infrastructure development, repurposing and/or construction, and the stimulation of foreign direct investments into Jamaica and the region.

The real estate in MJR’s portfolio has a range of applications to include residential, commercial, light industrial and hotel/residential projects. MJR is presently in the acquisition phase of its life cycle following which the company will be moving into the development phase starting in FY 2023. The development phase will involve Barita as investment manager engaging technical and financial partners to develop its properties.

An example of Barita’s approach through MJR is the intended development of the 250+ acre property, Reggae Beach. Located in Prospect St. Mary, Reggae Beach is intended to be transformed into a multifaceted development with high end resort, luxury villa and hospitality applications to the seaside twinned with residential and commercial services to include a town centre. It is intended for the development of this property to add further vitality to the community through the significant investment it will attract from the hospitality sector coupled with the attendant commercial and residential needs the hospitality services will necessitate. The development of the property is anticipated to transform the community’s environs and create and sustain thousands of jobs in various sectors for ordinary Jamaicans which holds true to our ethos as a Company.

There are several tailwinds to the planned development in our view, to include the continued return of international travel, the expansion of flights to the Ian Fleming International Airport, which is in close proximity to the property, and the dynamism of the topography of the land which augurs well for a landmark development.

Private Credit & Private Equity Strategies

Year-to-date in FY 2022 Barita has originated/sourced and deployed approximately $5 billion into private credit investments which have provided the company with equity type returns and have served as a source of resilience in our overall credit portfolio in the face of rising interest rates. Barita has identified several avenues through which the value embedded in these exposures can be realized and, in a similar way to our real estate strategy, we intend to make some elements of these strategies available to the investing public over time.

As we outlined in our FY 2021 annual report, we see our mandate as being an effective conduit through which investment opportunities are efficiently sourced and structured to serve as a key enabler to economic development even as we build capacity to satisfy the investment objectives of our customers. This mandate has informed the company’s decision to construct a funding profile which is overweight in equity capital relative to the typical broker-dealer operating in Jamaica. Higher capital ratios complemented by lower leverage afford Barita greater capability to execute on its investment strategy including the prudent management of idiosyncratic risks related to alternative investments.

See also

Barita Looking To A Future Built On A New Digital Platform As It Seeks To Be Resolute In Making Barita More Accessible, Convenient And Customer Focused.

Businessuite Markets

Businessuite Cover Story: Wigton’s Bold Bet – Could Tropical Battery Be the Key to Its Caribbean Clean Energy Empire?

This is exactly the model that global energy giants are pursuing: controlling the entire clean energy value chain to drive long-term sustainable revenues.

Published

on

Mr. Gary Barrow, CD
Chief Executive Officer Wigton Energy Limited (WIG)

In a bold move set to redefine Jamaica’s energy and electric vehicle (EV) landscape, Wigton Energy Limited (WIG) has taken control of Flash Holdings Limited, raising its stake to 51 per cent. This acquisition, while strategic in accelerating the roll-out of EVs under subsidiary Flash Motors Company Limited (FMCL), also signals a deeper ambition: Wigton’s emergence as the Caribbean’s leading multi-solution renewable energy powerhouse.

Yet behind the headlines of Wigton’s pivot from its windfarm legacy lies an even more intriguing opportunity – one involving Tropical Battery Company Limited, the decades-old Jamaican battery and solar energy firm currently in the throes of a J$1.79-billion (US$11.09-million) secondary share offering.

The offering, extended for a second time to July 4, is designed to reduce debt and graduate the company from the Junior Market to the Main Market of the Jamaica Stock Exchange – a critical step in Tropical Battery’s quest to list on Nasdaq within the next three to five years.

The question on the minds of investors and analysts is simple: Could Tropical Battery become Wigton’s next big strategic play?

 From Wind to Multi-Solution Renewables

Founded as Wigton Windfarm, the company rebranded in late 2024 to Wigton Energy Limited, reflecting a strategic pivot towards diversified clean energy solutions. Alongside wind, Wigton is now advancing solar photovoltaic (PV) projects, battery storage systems, and EV infrastructure – creating a full-suite renewable energy model.

The acquisition of Flash Holdings is a testament to this vision. Wigton’s initial 21 per cent stake, valued at J$112 million (just over 1 per cent of its total assets), was symbolic – an entry point into the EV market. The June 2025 expansion to majority control demonstrates serious intent to scale electric mobility, not only distributing EVs but enabling the charging infrastructure needed to drive adoption across Jamaica and, ultimately, the region.

 Tropical Battery’s Debt, Expansion, and Nasdaq Dreams

Alexander Melville Chief Executive Officer Tropical Battery Company Limited

Meanwhile, Tropical Battery is fighting its own battles. Founded in 1950, the company has evolved into an integrated battery distributor, solar energy provider, and EV solutions player, with strategic acquisitions in Silicon Valley (Rose Electronics) and the Dominican Republic (Kaya Energy).

Yet its rapid expansion has come at a cost. Tropical is carrying significant debt, including a US$9.5-million bridge loan from CIBC Caribbean Bank and a maturing J$300-million bond. The current APO seeks to raise at least J$1 billion to stabilise its balance sheet, improve working capital, and clear the path to Main Market graduation and Nasdaq listing.

But with two extensions announced in quick succession, questions loom about investor appetite. Institutional investors have reportedly requested more time for internal processes – a potential window for strategic partners like Wigton Energy to step in.

By participating significantly in Tropical Battery’s APO, Wigton could secure a meaningful minority stake – potentially 10-20 per cent – positioning itself on Tropical’s board and integrating the firm’s battery manufacturing and distribution network into Wigton’s renewable energy and EV ecosystem.

Why This Alliance Makes Sense

On paper, Wigton and Tropical Battery are perfectly complementary.

Wigton Energy Tropical Battery
Wind, solar, BESS, EV distribution Batteries, solar, EV services
Local grid expertise, renewable projects US and regional market access, battery manufacturing
Expansion capital and project development capability Need for strategic investor to reduce debt and scale

A Playbook for Execution

Strategic Capital Injection: Wigton could anchor Tropical’s APO, sending a strong market signal and stabilising Tropical’s financial base.

 Board Influence & Governance: Securing a board seat would align Tropical’s expansion with Wigton’s regional clean energy goals.

 Joint Ventures for EV Charging: Tropical’s battery and solar solutions combined with Wigton’s utility-scale renewable projects could fast-track the installation of EV charging stations powered by clean energy – a win-win for emissions goals and revenue streams.

 BESS & Grid Services: As Jamaica’s grid modernises, battery energy storage systems (BESS) will be critical for stabilisation and integration of renewables. Wigton and Tropical are both invested in this space, but collaboration could enable larger projects with better financing terms and risk sharing.

 Nasdaq Roadmap: Tropical’s ambitions to list on Nasdaq could be strengthened by Wigton’s institutional backing, while Wigton benefits from the valuation uplift of an equity partner expanding into North America.

Risks and Realities

Of course, execution risks remain. Tropical’s debt burden must be managed carefully to avoid operational strain. Cultural and operational integration will require disciplined governance structures. For Wigton, investing in a non-controlling stake carries the challenge of influencing strategy without direct operational control – a delicate dance that only strong board-level partnerships can navigate.

 The Bigger Picture

Ultimately, the strategic logic is compelling. Together, Wigton and Tropical Battery could create a vertically integrated clean energy and EV solutions group with:

✅ Renewable generation capacity
✅ Battery manufacturing and storage solutions
✅ EV distribution and charging infrastructure
✅ Access to regional and North American markets

This is exactly the model that global energy giants are pursuing: controlling the entire clean energy value chain to drive long-term sustainable revenues.

 “The Caribbean Tesla?”

As the Caribbean accelerates its renewable energy transition, the region needs companies with the vision, capital, and integration capability to deliver clean energy solutions at scale. Wigton’s rebranding is more than cosmetic; it is a bet on becoming the Tesla of the Caribbean – not only in EVs, but in energy storage, solar, and grid services.

By partnering with Tropical Battery, Wigton could create an ecosystem that powers Jamaica’s homes, businesses, and vehicles with clean, resilient energy – a transformative step towards the island’s 50 per cent renewable energy target by 2030.

And perhaps, in the years ahead, when investors search for the Caribbean’s first clean energy unicorn, it will be this strategic alliance they point to as the moment the region’s energy future changed forever.

Foot Notes

Company Overviews & Recent Moves

 Wigton Energy Limited (WIG)

  • Rebranded from Wigton Windfarm in November 2024 to reflect its pivot toward diversified renewables—wind, solar, batteries, and now EVs.
  • Broadening into solar PV (won ~50 MW project in 2024), and developing battery storage alongside EV infrastructure.
  • June 2025: boosted its stake in EV distributor Flash Holdings from 21% to 51%, aiming to fast‑track EV rollout via Flash Motors (FMCL). Wigton also provided corporate guarantees for FMCL loans

 Tropical Battery Company Limited

  • Jamaica-based battery and solar energy firm, listed in 2020; now distributes Mac Battery brand, solar solutions, and even sells Tesla vehicles
  • Acquired Silicon Valley-based Rose Electronics and Dominican solar firm Kaya Energy; revenue doubled in late 2024 but profit fell due to debt
  • Currently launching a J$1.79 billion (~US$11M) secondary share offering—now closing July 4—aimed at trimming debt and enabling migration from JSE Junior to Main Market, with Nasdaq aspirations in 3–5 years

 Business Model Synergies

Area Wigton Energy Tropical Battery
Core Offering Wind, PV, storage, EV distribution Automotive batteries, solar, energy storage
Geographic Reach Jamaica (grid), regional expansion Jamaica, US (Silicon Valley), Dominican Rep.
Debt/Capital Asset-based growth, moderate debt Significant debt load, seeking equity raise
Strategic Goals Full-suite renewables + EV market Debt elimination, market upgrade, Nasdaq prep

There’s a strong alignment in battery energy storage systems (BESS) and EV charging infrastructure. Tropical’s access to the US market and grid storage tech aligns with Wigton’s ambition to become a “multi-solution renewable provider.”

 Could Tropical Battery Be an Acquisition or Investment Target?

 Acquisition—Full or Partial

Full acquisition improbable: Tropical’s valuation (~US$11M) and upcoming debt clearance means it’s not distressed enough to sell entire control cheaply.

Strategic merger: WIG could acquire a controlling minority stake—e.g., buying current shareholders’ stock and participating in the APO. This could integrate Tropical’s distribution and manufacturing capacity into Wigton’s ecosystem.

 Participating in APO

With WIG’s guidance, investing in the July 4 APO (minimum J$1B) positions its shareholding favorable—potentially 10–20%+ depending on uptake.

This gives Wigton influence in Tropical’s board and strategic decisions without full takeover.

 Strategic Alliance Framework

 Coordinated capital raise: Wigton leads or coordinates participation in the APO, signalling stability and boosting investor confidence.

 Cross‑shareholding : Tropical could take a stake in FSMC (Flash Motors), aligning EV ambitions and creating a shared EV–battery value chain.

 Joint BESS & EV infrastructure roll‑out: Co-develop charging & storage solutions across WIG’s solar/Wind sites and Tropical’s commercial distribution footprint.

 Regional market expansion: Tropical supports EV battery servicing and solar projects from its Jamaica/US base, while Wigton provides local grid integration and regulatory experience.

IPO/Nasdaq roadmap: Wigton’s participation helps Tropical graduate to JSE Main then aim for Nasdaq—giving Wigton a stake in a growth IPO narrative.

 How This Can Be Executed

 Due diligence: Wigton assesses Tropical’s balance sheet post-IPO, tech integration capabilities (e.g., Silicon Valley assets), and debt reduction efficacy.

 Negotiation: Restructure APO conditions to secure stakes with board representation.

Legal integration: Form joint ventures for EV charging deployments and BESS installations, sharing risk and scaling faster.

 Capital partnership: Align Tropical’s Nasdaq ambitions with Wigton’s institutional backing—opening a new funding channel.

Summary

While a full takeover of Tropical Battery isn’t likely and may not be necessary, strategic participation in its APO offers Wigton:

  • Entry into battery manufacturing & EV services.
  • A way into the US through Silicon Valley tech.
  • Leverage Solar/BESS synergy.
  • A shot at future upside via Tropical’s equity if it lists on Nasdaq.

Continue Reading

Businessuite News24

Businessuite Special Report P4 | Homegrown Disruption: InterMetroONE & Walkbout.com Position Jamaica’s Answer to Uber–Airbnb

Now is the time for SMEs, associations, and government to align—ensuring that if Uber and Airbnb ever arrive together, Jamaica’s own ecosystem remains vibrant and in control.

Published

on

Introducing a Local Super App Alternative
InterMetroONE— a SuperApp under RedPlate Group Limited—offers air travel transfers, coach rides (like the upcoming JUTA Express), taxis, parcel courier service, groceries, and more, all in a single platform. In parallel, Walkbout.com is launching guided local experiences and cultural tours, tailored to small hotels and boutique hosts—positioning itself as a geolocal, authentic alternative to Airbnb Experiences .

Together, these two Jamaican startups hope to form the first fully integrated, locally led travel superapp—a provider-owned ecosystem unifying ground transport, tours, and boutique lodging—on Jamaican soil.

Why This Local Startup Could Succeed

1. Homegrown & Compliant
InterMetroONE already partners with national operators—notably JUTA Express launching in 2025—maintaining regulatory standards and local trust .

2. Multi-Service “One-Stop” Solution
Unlike global platforms, this app includes:
• Scheduled luxury bus and coach routes, with real-time tracking and no overcrowding
• Airport-to-hotel transfers, group charters, and executive vehicles
• Courier, grocery delivery, and soon,
• Walkbout local experiences—where travelers can engage local guides for deep-dive tours

3. Strengthening Small Operators
By aggregating bookings, logistics, and marketing, InterMetroONE can enable boutique hotel owners and taxi drivers to collaborate—without a Silicon Valley middleman. This could reduce leakage of commission and retain economic value in Jamaica.

Voices from the Ground

“Buses that run on time and aren’t overcrowded? That’ll be a game changer,” says a Montego Bay commuter, reflecting public frustration with unreliable transit

“We tried privatizing… coaster buses… commuting… nightmare. Regulation is the key.”

These voices underscore critical demand for reliable, regulated, privately managed transport systems like InterMetroONE.

Winning Together: A Roadmap for Collaboration

To make InterMetroONE–Walkbout successful for all stakeholders, local operators should:

1. Adopt Platform Tools
o Taxi associations, guesthouses, and tour guides should integrate into the app to capitalize on airport transfers, bus scheduling, and tours.

2. Bundle Services
o Boutique hotels can offer “Stay + Transport + Tour” packages using Walkbout experiences and InterMetro transfers as a single SKU.

3. Win Trust via Quality & Compliance
o Upfront certification, training, and standardized pricing under one local brand will build trust and consistency—unlike fragmented global platforms.

4. Promote Data-sharing & Feedback
o Operators can co-develop service improvements via shared metrics—e.g. tourist route demand, seasonal peaks—benefiting all.

5. Leverage Community Networks
o Word-of-mouth remains powerful. InterMetroONE can host info sessions in parishes to onboard small providers and build local ambassador networks.

Policy Must-Haves: Enabling the Local Answer
To support this model, five critical government measures are recommended:
1. Digitization Grants – Provide micro-grants or loans for small operators to access certification, insurance, app training.
2. Regulatory Parity – Ensure InterMetroONE offers drivers and guides the same professional license standards as JUTA—a level playing field.
3. Revenue Reinvestment – Structure tourism taxes or fees to match platform growth, ensuring earnings stay within local economies.
4. SME Networks – The Ministry of Tourism should facilitate full operator onboarding into the platform—including training programs, public trust campaigns.
5. Monitor Economic Leakage – Commission an independent impact study on how much tourist spend stays local versus platform-bound.

Vision: A Jamaican Model for the Caribbean
If successful, InterMetroONE and Walkbout can be more than a Jamaican solution—they could become a regional standard, adaptable to other Caribbean islands seeking locally anchored digital economies.

Call to Action: How Your Business Can Join the Journey
• Small hotels: Propose pilot transport + experience packages this summer.
• Taxi & bus operators: Partner with InterMetroONE as certified drivers or fleet providers.
• Tour guides: Join Walkbout.com to bring unique, heritage-led experiences.
• Policy-makers: Prioritize digital tourism frameworks and SME support.

Businessuite Online Summary
• A Jamaican-led, regulated, fully integrated travel app could beat global disruptors by staying local, compliant, and collaborative.
• Now is the time for SMEs, associations, and government to align—ensuring that if Uber and Airbnb ever arrive together, Jamaica’s own ecosystem remains vibrant and in control.

Continue Reading

Businessuite Markets

The Strategic Importance of Investor Communication and Recommendations for Caribbean Listed Companies

By embracing these practices, Caribbean listed companies can foster stronger relationships with investors, enhance market perceptions, and potentially realize higher valuations that reflect their true intrinsic value.

Published

on

Effective communication with investors is not merely a compliance exercise; it’s a strategic imperative that influences a company’s market valuation and access to capital.

Key benefits include:

Enhanced Market Valuation: Transparent and consistent communication reduces information asymmetry, leading to improved investor confidence and potentially higher stock valuations.

Improved Liquidity: Engaged investors are more likely to trade shares, increasing liquidity and reducing volatility.

Broader Investor Base: Proactive communication attracts a diverse range of investors, including retail investors who can provide stability and advocacy for the company.

Resilience During Crises: Companies that maintain open lines of communication are better positioned to navigate challenges and retain investor trust during turbulent times.

Global Trends in Investor Relations
Internationally, companies are adopting innovative strategies to engage with investors:

1. Digital Engagement Platforms
Companies are leveraging digital tools to provide real-time updates and interactive content:
Investor Portals: Secure platforms offering access to financial reports, updates, and company news.
Webinars and Virtual Events: Facilitating direct interaction between management and investors.
Social Media: Utilizing platforms like LinkedIn, Twitter, and YouTube to disseminate information and engage with a broader audience.

2. Personalized Communication
Tailoring messages to specific investor segments enhances relevance and engagement:

Segmented Reporting: Providing information tailored to the interests of different investor groups.
Interactive Content: Using videos, infographics, and interactive reports to make complex information more accessible.

3. Emphasis on ESG Reporting
Environmental, Social, and Governance (ESG) factors are increasingly influencing investment decisions:

Transparent ESG Disclosures: Providing comprehensive reports on ESG initiatives and performance.

Integrated Reporting: Combining financial and non-financial information to present a holistic view of the company’s performance and strategy.

Recommendations for  Caribbean Listed Companies
To bridge the communication gap and unlock shareholder value, Caribbean listed companies should consider the following strategies:

Establish Robust Investor Relations Programs: Develop dedicated IR teams or functions responsible for managing investor communications and relationships.

Leverage Digital Channels: Utilize websites, social media, and email newsletters to provide timely and accessible information to investors.

Host Regular Investor Events: Organize webinars, virtual town halls, and Q&A sessions to engage directly with investors and address their concerns.

Enhance Transparency and Disclosure: Provide clear, comprehensive, and timely information on financial performance, strategic initiatives, and ESG efforts.

Solicit and Act on Investor Feedback: Implement mechanisms to gather investor input and demonstrate responsiveness to their concerns and suggestions.

Adopt Integrated Reporting Practices: Combine financial and non-financial reporting to present a cohesive narrative of the company’s value creation strategy.

By embracing these practices, Caribbean listed companies can foster stronger relationships with investors, enhance market perceptions, and potentially realize higher valuations that reflect their true intrinsic value.

Continue Reading

Businessuite Markets

Spur Tree Spices Projects Growth from Product Innovation, Domestic Sales, and E-Commerce Scaling

The Company expects continued growth in the traditional product segments, supported by the rollout of new products, increased domestic sales through expanded retail penetration and stronger trade execution, and the scaling of its Amazon and e-commerce presence through optimised listings, targeted advertising, and improved fulfilment efficiency.

Published

on

Albert Bailey Chief Executive Officer Has Released The Following Report On The Financial Performance Of Spur Tree Spices Jamaica Limited For The First Quarter Ended March 31, 2025, Including The Presentation Of Unaudited Financial Statements Prepared In Accordance With International Financial Reporting Standards

The Company’s overall results for the first quarter were shaped by several ongoing challenges in the agro-processing sector. These challenges disproportionately impacted the subsidiaries. However, amidst these challenges, there were many positive indicators, including continued double-digit revenue growth in the traditional seasonings and sauces segment of the business. While profit performance for the quarter declined compared to the corresponding period for 2024, the company remains on track for a successful year. In the coming months, all indicators point to the normalisation of key raw material supply, including ackee. These factors, combined with expected growth from new product segments and continued expansion of traditional product categories, put the company on a firm path to continued success.

Consolidated revenue for the first quarter totalled J$336.39 million, compared to J$394.49 million in the corresponding period 2024, representing a 17.3% decline. This was primarily due to continued constraints in the supply of ackee, a key raw material for the Company’s subsidiaries. Despite this challenge, the Company recorded notable growth in several categories, including seasonings, sauces, and dried products, supported by expanded distribution in local and export markets, strong consumer demand, and the successful launch of new product lines.

Cost of Sales for the period amounted to J$245.86 million, or 73.09% of revenue, compared to J$287.62 million (72.91%) in Q1 2024. The slight increase in the cost-to-revenue ratio reflects the shift in product mix, as the Company adjusted production output to include a higher proportion of lower-margin items in response to the limited availability of ackee. Though not ideal, these measures enabled the business to sustain production and meet customer demand amidst raw material constraints.

Gross Profit for the quarter was J$90.53 million, down from J$106.86 million in the corresponding period of the previous year, a 15.3% decline. This was driven by the revenue reduction and a greater contribution from lower-margin substitute products produced during the ackee shortfall.

Nonetheless, the Company remains optimistic about the recovery of gross margins in the coming quarters. Continued rollout of new and value-added products across core and subsidiary operations is expected to improve the overall margin profile. In addition, the gradual recovery of ackee supply, enabled by targeted investments in farming and expanded sourcing, is expected to restore availability and strengthen the Company’s higher-margin revenue base. Together with ongoing cost-efficiency measures, these strategic actions are anticipated to drive improved profitability as the year progresses.

Administrative Expenses for the quarter amounted to J$69.62 million, representing a 2.5% reduction compared to J$71.38 million in Q1 2024. This reflects the Company’s disciplined approach to cost management and operational efficiency while ensuring that critical support functions remain in place to advance strategic objectives.

Finance Costs rose to J$12.05 million, compared to J$9.54 million in the same period last year, an increase of 26.3%. This was primarily due to interest on an additional J$55 million loan secured to support Spur Tree’s farming operations. This investment is key to the Company’s broader strategy to stabilise raw material supply and ensure production continuity.

Net Profit attributable to the Company totalled J$12.00 million, down from J$28.18 million in Q1 2024, representing a 57.3% decline. The result was mainly impacted by the continued raw material shortages affecting subsidiary operations, which offset gains achieved through product expansion and cost containment elsewhere in the Company.

At the end of the reporting period, Cash and Cash Equivalents stood at $131.7 million, reflecting a 26% increase over the $104.4 million reported for the corresponding period in 2024. Total Assets increased to $1.68 billion, up from $1.56 billion, representing an 8% yearover-year improvement. Shareholders’ Equity also strengthened, rising by 9% to $1.03 billion compared to $948 million in the prior year.

Although the consolidated performance fell below expectations for the quarter, the Company remains confident in its long-term strategy. Investments in farming, supply chain resilience, and innovation are expected to yield increasing benefits in the quarters ahead, supporting recovery and future growth.

Outlook

The outlook for 2025 remains positive despite the temporary headwinds experienced in the first quarter. The Company continues to demonstrate resilience and growth in its core operations, with strong performance across established and new product categories, supported by increased market penetration locally and internationally.

The Company expects continued growth in the traditional product segments, supported by the rollout of new products, increased domestic sales through expanded retail penetration and stronger trade execution, and the scaling of its Amazon and e-commerce presence through optimised listings, targeted advertising, and improved fulfilment efficiency.

The Company’s subsidiaries are actively pursuing product diversification strategies to safeguard the ackee supply, which we expect to normalise in the coming months. The Company is also broadening its portfolio to include other complementary items. This will lead to a return to an overall profit position by the end of the year.

Investment in direct farming continues to be a cornerstone of the Company’s strategy. It enhances the availability of raw materials and strengthens supply chain resilience. These efforts are expected to increase value throughout the year, supporting operational stability and margin recovery.

With these initiatives firmly in motion, the Company is well-positioned to build momentum over the coming quarters. Management remains focused on delivering sustainable growth and creating long-term value for all stakeholders.

For More Information CLICK HERE

Continue Reading

Businessuite News24

BOJ Monetary Policy Committee Agrees to Reduce the Policy Rate by 25 Basis Points

Published

on

The Bank of Jamaica (BOJ) Monetary Policy Committee (MPC) has unanimously agreed to reduce the policy rate by 25 basis points from six per cent to 5.75 per cent per annum, effective May 21.

The policy rate is offered to deposit-taking institutions (DTIs) on overnight placements with the BOJ.

Central Bank Governor, Richard Byles, speaking during the Quarterly Monetary Policy Report press conference at the Jamaica Conference Centre in downtown Kingston on May 21, said the decision was taken after careful consideration of the implications of global developments, recent economic trends, and the outlook for the Jamaican economy.

The Governor pointed out that the incoming economic data on Jamaica continues to point to a stable domestic economy with inflation remaining in the four per cent to six per cent target range.

“On the 15th of May, the Statistical Institute of Jamaica (STATIN) reported that headline inflation as at April 2025 was 5.3 per cent, in line with the out-turn for April 2024. Headline inflation has, therefore, continued to remain within the Bank of Jamaica’s target. Also, core or underlying inflation remains low,” he pointed out.

He further noted that core inflation, which excludes the prices of agricultural food products and fuel from the consumer price index, was 4.4 per cent at April 2025, remaining below six per cent since July 2023.

“The stable and relatively low inflation out-turn primarily reflected the end of the impact of previous price increases for regulated items, such as bus and taxi fares, and no new such increases, which offset higher food inflation. Moreover, the exchange rate, imported inflation and the private sector’s expectations of future inflation have been fairly stable,” he said.

Governor Byles said the MPC also agreed to preserve relative stability in the foreign exchange market.

He noted that expectations about exchange rate depreciation have remained fairly stable.

“At the 14th of May 2025, the exchange rate had depreciated on a year-over-year basis by 1.9 per cent. There was a mild uptick in the pace of depreciation between end April and early May in the context of a slight increase in demand and a build-up of foreign exchange positions by authorised dealers.

“In response, the Bank augmented flows in the market. Cumulatively, BOJ has sold US$1.1 billion via the BOJ-Foreign Exchange Intervention & Trading Tool (B-FXITT) facility over the 12 months to the end of April 2025, compared to US$983 million over the 12 months to the end of April 2024. However, it is important to note that the Bank net purchased approximately US$1.1 billion over the 12-month period to April 2025,” he said.

Mr. Byles noted, further, that as at 14th of May, Jamaica’s gross international reserves remains healthy, amounting to US$5.9 billion or 135 per cent of the measure considered adequate.

He said there has been moderation in imported inflation in the March 2025 quarter relative to the December 2024 quarter, noting that, specifically, oil prices declined during the quarter relative to the previous year.

“The Bank estimates that the domestic economy grew in the range of 0.0 to 1.0 per cent for the March 2025 quarter, which translates into an estimated contraction of -1.0 to -0.5 per cent for the financial year 2024/25. Finally, while employment levels remain high, anecdotal data suggest that wage pressures are moderating,” he added.

By: Chris Patterson, JIS

Continue Reading

Trending

0
Would love your thoughts, please comment.x
()
x