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Jamaica Producers Group Delivers Strong Half Year Results Increasing Revenues By 26%

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C.H. Johnston Chairman Jamaica Producers Group Limited Has Released The Following Report For The 26-Week Period Ended July 2, 2022.

For the 26-week period ended July 2, 2022 (the “First Half”), Jamaica Producers Group Limited (“JP”) delivered strong results. JP earned consolidated net profits of $1.6 billion from revenues of $14.4 billion. JP increased revenues by 26% over the prior year, with sales and earnings growth in both our business segments – Logistics & Infrastructure (“L&I”) and Food & Drink (“F&D”). Year-to-date net profit attributable to shareholders was $864 million, an increase of 42% over the prior year.

JP Logistics & Infrastructure
The L&I Division is a diversified, multinational logistics group and accounts for the major share of the Group’s net assets and, in turn, its profits. The Division includes our interests in port terminal operations, warehousing and third-party logistics services (Kingston Wharves Limited), freight consolidation and forwarding (JP Shipping Services and Miami Freight & Shipping) and liner services (Geest Line). The Group’s logistics services all have a Caribbean connection but collectively serve a wide range of global markets.

The L&I Division generated profit before finance cost and taxation for the 2022 First Half of $1.9 billion, a 13% increase over the prior year. Divisional revenues of $5.7 billion were up 24% over the same period in the prior year.

The improved performance reflects our strategy to build a diversified Caribbean logistics platform through business development initiatives, capacity expansion and select acquisitions. Our recently acquired UK-based joint venture shipping line — Geest Line — and US-based freight consolidation business — Miami Freight & Shipping – both contributed to the improved profitability of the Division.

JP Food & Drink
JP’s F&D Division is the largest contributor to the revenues of the Group. The Division earned year-to-date profits before finance cost and taxation for the First Half of $283 million on revenues of $8.6 billion. Earnings increased 72% and revenue increased 27% relative to the prior year. The F&D Division comprises our portfolio of businesses that are engaged in farming, manufacturing, distribution and retail of a wide range of food and drink. The Division has production facilities in Europe (the Netherlands and Spain) and the Caribbean (Jamaica and the Dominican Republic) and operates a distribution centre in the United States.

Our JP Farms business continues to lead in banana and pineapple production in Jamaica. Our range of specialty food and drink products includes fresh juices, tropical snacks, frozen foods, fresh fruit and Caribbean rum-based baked goods. A.L. Hoogesteger Fresh Specialist B.V. (“Hoogesteger”) 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 supermarket and food service entities in the Netherlands, Belgium, Scandinavia and Switzerland.

During the year, the Division experienced material increases in costs associated with raw material commodities, personnel and logistics. These cost increases must be recovered, to the extent possible, through increases in selling prices. The initiative to adjust prices to align with market conditions is now well underway, but during the First Half we experienced some margin compression in the instances where we delayed price increases to balance any uncertainty in demand or limits to consumer confidence. However, the adverse impact of reduced margins was more than offset by the benefit of solid volume growth.

Outlook
Jamaica Producers Group Limited has been organised to generate revenues from a diverse range of business lines and, importantly, a diverse range of markets. Our Food & Drink business includes premium and travel retail products, as well as everyday snacks and basic food items. These businesses 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, Northern Europe, North America and Caribbean travel retail and hospitality.

Our logistics businesses, also operating in Europe, the USA and the Caribbean, handle a wide range of commodities and service a large number of origin and destination markets. Services provided range from shipping and freight forwarding to stevedoring, terminal operations, cold storage and logistics.

We see the diversity of our business as a strength. We are of the view, however, that inflation, supply chain shocks and disruptions to business confidence arising out of war, health-related restrictions, logistics challenges and adverse macroeconomic conditions all present general business challenges in the short term. Our strategy is to build on our core business capabilities in Food & Drink and Logistics & Infrastructure through active engagement and strategic alignment with key customers, efficiency enhancing capital investment projects and selective acquisitions. Core capital investments in our terminal, cranes and warehousing at Kingston Wharves are designed to expand capacity, gain market share and drive
efficiency in our logistics businesses.

Investment in food grade packaging lines, information technology systems, efficiency and hygiene, and health and safety are all expected to bolster the Food &Drink Division in the months ahead.

Based on our acquisition strategy, we will continue to identify other logistics services that support trade with the Caribbean, and Food & Drink businesses in markets that present definite new growth opportunities for the Group. With shareholders’ equity of $18.4 billion (an increase of 9% relative to the prior year) and cash and investments of $10.9 billion, we believe that the JP Group has the balance sheet strength to support this strategy.

More Information CLICK HERE

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Elite Diagnostic Limited: Navigating Challenges and Seeking Growth

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Harvey Levers Chief Executive Officer for Elite Diagnostic Limited has released its unaudited financial statements for the third quarter ended March 31, 2024. The results suggest that while the company has seen some financial improvements, it continues to face challenges in growing and stabilizing its business.

Businessuiteonline.com delves into the company’s recent performance, the hurdles it faces, and the strategic initiatives management is undertaking to attract investors and secure a more stable future.

Financial Performance Overview

For the third quarter of 2024, Elite Diagnostic reported a revenue of $205.1 million, marking a modest 2% increase over the same period last year. This uptick in revenue by $2.9 million signifies a positive trend, albeit small. More notably, the company’s gross profit saw a significant rise of 10.4%, jumping from $135.5 million to $149.6 million. Operating profit experienced an impressive 44% increase, moving from $17.4 million to $24.9 million compared to the same period in the prior year.

One of the key highlights of the financial statement is the substantial improvement in net profit. The net profit for the quarter stood at $12.6 million, which represents a 110% increase from the $6.0 million reported in the comparative quarter of 2023. This boost was achieved despite a 26% increase in administrative expenses amounting to $20.4 million, which was effectively offset by a 53% reduction in depreciation expenses.

Assets and Liabilities

Elite Diagnostic’s total assets amounted to $1,033.0 million, slightly down from $1,053.1 million in the previous year. This decrease is attributed to the reduction in the book value of some fixed assets. On the liabilities front, the company saw a reduction from $577.1 million to $550.1 million, reflecting the ongoing reduction of long-term debt as per the scheduled repayments.

Strategic Initiatives and Challenges

The improved financial performance of Elite Diagnostic can be largely attributed to strategic measures implemented late last year aimed at reducing machine downtime. Machine downtime has been a critical issue for the company, affecting operational efficiency and customer service delivery. By addressing this issue, Elite Diagnostic has not only enhanced its operational performance but also improved its financial results.

However, the company still faces significant challenges. The 26% increase in administrative expenses indicates that operational costs remain a concern. Additionally, despite the reduction in depreciation expenses, managing the costs associated with maintaining and upgrading diagnostic equipment is a continuous challenge.

Elite Diagnostic has also historically struggled with stabilizing its business and achieving consistent growth. Market competition, economic fluctuations, and the high costs associated with advanced diagnostic technology are ongoing hurdles. The reduction in total assets, due to decreased book value of fixed assets, suggests a need for strategic asset management to avoid future devaluations.

Attracting Investors

To make the company more attractive to investors, management is focusing on several key areas:

Operational Efficiency: Continuing efforts to minimize machine downtime and optimize operational processes are critical. By ensuring high machine availability and reducing operational disruptions, Elite Diagnostic aims to enhance service reliability and customer satisfaction.

Cost Management: While administrative expenses have risen, the significant reduction in depreciation expenses shows a promising direction. Management needs to maintain a balance between necessary administrative costs and overall cost-efficiency to ensure sustainable profitability.

Customer Service: Maintaining a high standard of customer service delivery remains a top priority. Superior customer service can differentiate Elite Diagnostic from competitors and foster customer loyalty, which is essential for long-term growth.

Debt Reduction: The ongoing reduction of long-term debt is a positive sign for potential investors, indicating prudent financial management and a focus on strengthening the company’s balance sheet.

Innovation and Technology: Investing in the latest diagnostic technologies and ensuring their optimal functioning can position Elite Diagnostic as a leader in the field. This requires a strategic approach to capital expenditures and continuous innovation.

Conclusion
Elite Diagnostic Limited has shown commendable improvement in its financial performance for the third quarter of 2024. Despite the ongoing challenges, the company’s strategic initiatives to reduce machine downtime and focus on customer service are yielding positive results. By addressing operational inefficiencies and managing costs effectively, Elite Diagnostic is working towards becoming a more attractive proposition for investors. The road ahead may be challenging, but with continued focus on strategic priorities, the company can aim for sustainable growth and stability in the competitive diagnostic industry.

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Jetcon Corporation Shifting Focus Towards Sale Of New Cars With BAIC Brand, In Line With Banks Financing Preference.

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Andrew Jackson Executive Chairman Jetcon Corporation Limited (JETCON) – has released the following Unaudited Financial Statements for First Quarter ended March 31 2024.

Jetcon Corporation ended the first quarter of 2024 cutting net losses almost in half compared to the same period in 2023, at $0.89m compared with $1.76m last year.

Cost of Sales decreased 37 percent, to $112m from $154m last year.

Earnings per share total 0.15 cents, down from 0.30 cents last year.

On the balance sheet Inventories total $400 million, which includes used and new vehicles, and solar products, while receivables total $97 million and includes deposits on purchases of imports.

Banks continue to give more favourable lending rates towards the purchase of new cars than used cars, and this is reflected in the continuing stagnation of used car sales. We are therefore shifting focus towards the sale of new cars with the BAIC brand, and we have received positive feedback thus far with the models. Resources will be increasingly transferred from used sales to new sales as new sales pick up.

Similarly, solar product sales continue to be positive, and combined with new car sales, we expect this will form the bulk of revenue in the next 12 months, with much higher profit margins than that of used car sales.

Our Audited Financials for the year ended 2023 will be posted within the next two weeks, and the Board and management regret their lengthy delay. We would like to thank shareholders, management, staff and customers for their continued support.

For More Information CLICK HERE

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Seprod Group Reporting Reduced Net Profits For Year and Quarter-to-Date Performance

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Richard Pandohie Chief Executive Officer for Seprod Group Limited has released the following summary Interim Report to Stockholders from their 1st Quarter Unaudited Financial Statements

Seprod Group Limited (Q1 2024)
Year and Quarter-to-Date Performance (January-March 2024) Revenues:

• Total Revenue: $28.59 billion, up by $1.53 billion (6%) from Q1 2023.
• Gross Profit: $9.48 billion, up by $1.14 billion (13%) from Q1 2023.
• Net Profit: $1.20 billion, down by $152 million (11%) from Q1 2023.

Comments on Performance:

Revenue Drivers:

• Margarine Production: Normalized post-plant upgrade; aggressive market share recovery underway.
• Juice and Dairy Beverages: Demand exceeds capacity; new production capacity to be added later this year.
• Export Sales: Increased by 27%.
• Bryden Group Premium Beverages: Revenue negatively impacted by a short carnival season in Trinidad and Tobago.

Net Profit Factors:

• Interest Expense: Increased due to higher interest rates.
• Effective Tax Rate: Higher in Bryden Group due to business mix changes and expired benefits.
• Dairy Farm Costs: Increased significantly due to drought in Jamaica.
• Pharmaceutical Business: Supply chain challenges.
• Cost Increases: Insurance, interest rates, security, transportation, etc., have eroded profit margins.

The company continues to focus on creating sustainable shareholder value through regional platform expansion and investment in talented, motivated personnel.

For More Information CLICK HERE

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Mailpac Group Tags MyCart Express Assimilation For Enhanced Revenue And Operational Efficiencies To Turn Things Around

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Khary Robinson Executive Chairman Mailpac Group Limited has released the following Directors’ Report To Shareholders for the quarter ended March 31, 2024.

Introduction

Mailpac Group Limited (“Mailpac” or the “Company”) presents its unaudited financial statements for the quarter ended March 31, 2024.

Throughout the quarter, Mailpac focused on closing on the acquisition of MyCart, a significant step in entrenching the business as the leader in e-commerce fulfillment in Jamaica. Not only will the transaction significantly expand market share and improve service delivery, but the brands in the group are now better positioned to meet the goals and needs of their respective target markets. Additionally, despite increased competition and external factors impacting efficiencies, our financial performance for the reviewed period was commendable.

Financial Performance:

In Q1 2024, Mailpac’s revenue came in at $368.5 million, down by 7.8% from the previous year mainly because of the reduction in Mailpac Local and commissions from the marketplace platform at Aeropost.

Despite the reduction, Gross profit for Q1 was $197.9 million, up by 3.6% compared to the previous year.

Operating expenses in Q1 totaled $130.8 million, a 13.6% increase year-over-year, mainly due to strategic investments in business growth and data protection remediation efforts.

Net profit for Q1 decreased by 16.7% to $50.1 million.

We anticipate profitability improvements in 2024 through customer base expansion and overhead cost reductions due to strategic enhancements and shared key operations between Mailpac and MyCart Express.

Financial Position:

At the end of Q1 2024, Mailpac’s Total Assets were valued at $626.3 million, with a cash position of $156.2 million.

Shareholder’s Equity stood at $537.9 million.

Outlook:

With the completion of the acquisition of MyCart Express at the end of March 2024, we are optimistic about the expected synergistic benefits, enhanced revenue streams, operational efficiencies and increased shareholder value from Q2 onwards.

We are confident that the decision to bring both brands under the same umbrella will position Mailpac for continued growth, industry leadership and success in e-commerce.

For More Information CLICK HERE

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Agostini’s Directors Approve Interim Dividend of 40c per share

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Christian E. Mouttet Chairman For Agostini’s Limited has released the following Unaudited Half-year Summary Consolidated Results for Agostini’s to March 31, 2024

The Agostini’s Group maintained a consistent financial performance during the First Half of the 2024 Financial Year.

Revenue increased 7%, reaching $2.57 billion, and operating profit improved marginally to $269 million.

Profit attributable to shareholders, excluding the one-off, non-cash Net Gain on Acquisition, decreased by 6% from $l30 million to $122 million, largely as a result of some non-recurring gains recorded in the previous year, including the profit from the divestment of the Agostini’s contracting division.

Earnings per Share for the first six months were $1.76 versus $1.88 in the prior year without the net gain ($3.93 inclusive of the gain).

Our Consumer Products and Energy & Industrial segments continued to perform well during the period, however, Pharmaceutical & Health Care lagged in profitability in the Second Quarter. This was partially due to supply chain disruptions as well as softer conditions in some regional markets, both of which we are working to improve in the Second Half.

At the end of April, the Group formed a strategic alliance with Linda’s Bakery acquiring 14 of their retail outlets, through our SuperPharm retail subsidiary. This acquisition facilitates our efforts to expand our Presto brand of freshness and convenience across Trinidad & Tobago.

We are in the process of structuring our Pharmaceutical & Health Care and Consumer Products segments to take advantage of our regional position, which has stemmed from our acquisitions in recent years, and this should be completed by the end of the financial year.

We expect to reap the benefits of this now and in the future and remain confident in our strategy for long-term sustainable growth

Based on our Half-year results, the Directors have approved an interim dividend of 40c per share, similar to the prior year. The dividend will be paid on June 28, 2024, to members on the register on June 3, 2024. Our share register will be closed on June 4 and 5, 2024.

For more information CLICK HERE (more…)

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