Jamaica Producers Group Limited (“JP”) generated revenues of JA$5.2 billion and net profit attributable to shareholders of $220 million. This was outlined by Chairman Charles Johnston in his report to shareholders included in the company’s recently released unaudited group results for the 13-week period ended March 28, 2020 (the “first quarter”).
Citing the emerging adverse impact of the COVID-19 pandemic on the global economy, the performance of the Group was mixed, as revenues increased by 8% relative to the 2019 first quarter, but profit attributable to shareholders declined by 4%, he reported
The Logistics & Infrastructure (“L&I”) Division accounts for the major share of the Group’s net assets and its profits. In addition to Kingston Wharves Limited, the Division’s largest subsidiary (which operates a multipurpose port and logistics hub), the L&I Division also includes JP Shipping Services Limited (which operates logistics and shipping services between the United Kingdom and Caribbean ports).
The L&I Division generated a 2020 first-quarter profit before finance cost and taxation of $733 million, an 11% increase over the prior year. Divisional revenues of $2.1 billion were up 2% over the prior year.
The Division continues to benefit from a series of initiatives to develop Kingston Wharves as a leading regional multipurpose and multi-user terminal, and Newport West as a warehousing and automotive logistics hub he reported.
During the first quarter, a general slow-down in global trade impacted the volume of transshipment containerised cargo handled by the terminal. This was offset by growth in value-added logistics services, including the storage of excess inventory of durable goods for global markets reported Johnston.
JP Shipping Services Limited handles the consolidation and shipping of commercial cargo, personal effects, and vehicles between the UK and CARICOM countries on a weekly or fortnightly basis.
Lockdowns and other restrictions on movement and business activity in both the UK and the Caribbean, as a result of COVID-19, reduced the volume of cargo available for shipment and adversely affected this business during the first quarter.
JP’s Food & Drink (“F&D”) Division is the largest contributor to the revenues of the Group and earned first-quarter profit before finance cost and taxation of $113 million.
The F&D Division comprises portfolio subsidiaries that are engaged in farming, food processing, distribution and retail of food and drink, and has production facilities in Europe and the Caribbean, and operates a distribution centre in the United States. The range of specialty food and drink products includes fresh juices, tropical snacks, fresh fruit, and Caribbean rum-based confectionery and baked goods.
A.L. Hoogesteger Fresh Specialist B.V. is the largest contributor to the revenues and profits of the Division. This business is a market leader in fresh juice in northern Europe and serves as a co-packer of juice for major supermarkets and foodservice entities in the Netherlands, Belgium, Scandinavia, and Switzerland.
During the first quarter, the Division experienced reduced food sales in travel retail, foodservice, and convenience channels, but this was more than offset by increased sales in supermarkets.
Commenting further he noted that the cost of operations was adversely affected by extraordinary measures to maintain customarily strong service levels across all aspects of their international fresh fruit and vegetable supply chain and food processing facilities during COVID-19.
In his outlook, he noted that Jamaica Producers Group has long been organised to generate revenues from a diverse range of business lines and, importantly, a diverse range of markets. The food and drink business includes premium and travel retail products, everyday snacks, baked goods, a wide range of fresh and cold-pressed juices, fresh tropical fruit, and prepared frozen foods. These business lines are aligned to general consumer trends such as the focus on health, convenience, and provenance, and they serve markets as diverse as the Caribbean and Caribbean diaspora, North America and Northern Europe. In ordinary times, they also serve the full range of US cruise and stopover tourist destinations in the Caribbean, Mexico, and Florida.
Their logistics businesses, which also operates in Europe and the Caribbean, handle a wide range of cargo types – including bulk, breakbulk, containerised cargo and vehicles – and service a large number of origin and destination markets. Services provided range from freight forwarding to
stevedoring, terminal operations, warehousing, cold storage, and logistics.