October 27, 2021
Jamaica Teas Limited (JAMT) held its Annual General Meet today as Managing Director John Mahfood shared his review of the Company’s performance in 2020. Mr. Mahfood highlighted, “A major challenge during the 2020 financial year was keeping up with the demands of our overseas customers and increasing production. We did a relatively good job in meeting those demands; however, in 2021, the challenge was logistics, getting the raw materials in place so we could produce the products needed. The last half of 2021 saw us suffering badly in terms of stockouts and lost sales. We are, however getting on top of that situation; hence I expect that in the first quarter of the FY2022, we’ll see an improvement in logistics.”
For the year ended September 30, 2020, the company’s revenues grew 70% to reach a total of $2.20 billion (2019: $1.29 billion). The cost of sales went up 68% to reach $1.61 billion. However, the gross profit margin expanded to 68% from the previous year’s 33%. Profit attributable to shareholders in 2020 closed at $222.40 million in contrast to $395.76 million in 2019.
Mr. Mahfood further added, “The supermarket continues to suffer from a downturn in sales due to curfews and other restrictions. However, these restrictions are slowly being rolled back, and if the authorities are able to maintain a low level of infection, I believe we will make our way through 2022, especially with the tourism industry rebounding. In 2022 several new products and designs will be launched to supplement our business. We are increasing the production of our dry pot products such as soup and spices; this stand-alone business will operate out of our new facility located near to our factory.”
Chief Financial Officer Mr. Cameron Burnet noted that “In November 2022, JTL was successful in its bid for the globally coveted Safe Quality Food (SQF) certification following its previous HACCP certification in 2018. This certification positions the Company among world-class manufacturers hence the Company will be better able to attract contract manufacturing business from global brands.”
- FY2021 saw strong gains in Revenues and Retained Earnings for manufacturing; however, for FY2022, JAMT is cautious in it expectations due to supply chain disruptions and supply chain-related inflationary pressures.
- For FY2022, JAMT expects the cost of raw material and shipping to continue to rise.
- High levels of vaccine hesitancy and slow pace of rollout will have negative impacts on the economies of the Caribbean region.
- Factory expansion remains one of the Company’s key growth projects for FY2022.
- Aggressive Product Development Strategy being embarked on for FY2022.
- Expected decline in revenue for the supermarket business due to reduced customer count as a result of the COVID-19 infection prevention and control measures.
- Sale of Belvedere units to be recorded in FY2022.
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