John Mahfood heads the Management Team and is responsible for developing and implementing guidelines, internal controls and human resource procedures. He is experienced in local and international retail and trading, as well as mergers, expansions and turnarounds, having served in those capacities in several corporate entities.

He is a Certified Public Accountant and a Fellow of the Institute of Chartered Accountants of Jamaica.

THE GROUP

The Group includes:
Jamaican Teas Limited (JTL), manufacturers of Tetley and Caribbean Dreams teas and groceries; this includes packing and processing teas for other local
companies as well as purchasing grocery products manufactured locally and overseas by third party manufacturers.

H Mahfood and Sons Limited (HMS), which owns real estate investment properties and develops real estate projects.

LTJ Fund Managers Limited (LTJ), formerly JRG Shoppers Delite Enterprise Limited (JRG), which owned the Shoppers Delite supermarket in Kingston up to February 2019, before it was sold to Bay City Foods Limited (BCF), an associated company. LTJ has no other operations at present.

Bay City Foods Limited (BCF), a 50 percent owned associated company up to October 2019, and operators of the Shoppers Delite supermarket in Kingston since February 2019.

KIW International Limited (KIW), formerly owners of an investment portfolio of companies listed on the Jamaica Stock Exchange (JSE), and now an intermediate holding company for some of the Group’s shares in QWI Investments Limited. KIW has no other operations at present.

QWI Investments Limited (QWI), a 24 percent owned subsidiary company managed and controlled by JTL and KIW, owners of an investment portfolio of companies listed on the JSE and since September, several overseas companies listed on the US stock exchanges.

GROUP REVENUES AND PROFIT
Group Operating Revenues declined from approximately $1.8 billion in 2017/18 to almost $1.3 billion this year. This $476 million decline resulted
primarily from:
• the inclusion of only four months’ sales for the Shoppers Delite supermarket in 2019, following its sale to Bay City Foods Ltd, an associated company, in February 2019 versus a full twelve months of sales in 2017/18.
• $25 million of home sales at Orchid Estates in 2019 compared to $209 million in the previous year.

In the new financial year 2019/20, the Group’s operating revenues is projected to be significantly higher than in 2018/19 due to:
• the consolidation of 100 percent of the revenues from Shoppers Delite, following the purchase of 50 percent of the shares in Bay City Foods Ltd., which we did not own in October 2019.
• the commencement of real estate sales at our apartment development in the Manor Park area of Kingston.

Group Cost of Sales declined from $1.4 billion in 2018 to almost $1 billion in 2019 for the same reasons as the reduction in revenue stated above.

Gross Profits declined from $338 million to $333 million.

Non-operating Income grew from $106 million to $551 million, primarily due to the recognition of $376 million in fair value gains on securities held by QWI
and an additional $72 million in revaluation gains on investment properties held by the Group.

Administration costs increased by $35 million in the period due to the consolidation of QWI for the first time, which had a much larger level of investment activity in 2019 than the Group experienced in the prior year. Finance costs increased by $10 million, mainly due to increased borrowings at QWI, which did not exist in the prior year.

As a result of the increased fair value and revaluation gains outlined above, the Group’s profits before tax and net profit both more than doubled.

Extracted from Chief Executive Officer report

John Mahfood Chief Executive Officer
More information https://www.jamstockex.com/wp-content/uploads/2020/01/JAMT-Annual-Report-2019-1.pdf