June 21, 2021
Jamaica Producer’s Group Limited Chief Executive Officer, Jeffrey Hall, highlighted the financial performance for FY2020. The Group recorded Revenues of $21 billion for FY2020, down 2% as a result of the pandemic. Gross Margins fell during the financial year as a result of short-term disruptions to the supply of commodity within the Foods & Drink segment. Additionally, the Group focused on maintaining service levels and customer expectations which incurred additional cost. The consolidated Net Profits of the Group for 2020 were $3.7 billion of which net profit attributed to shareholders was $2.2 billion, an increase of 80% over the prior year.
Total Assets rose by 6% to end at $41 billion at the end of 2020 relative to the $38.60 billion reported a year prior. Approximately 80% of the Group’s assets are invested within the Logistics and Infrastructure space. As it relates to revenues the largest share comes from the Food & Drink category, which is approximately 60%. Geographically, Jamaica accounts for 44% of the Group’s revenue, which North America & the Caribbean, and Europe account for 10% and 46% respectively.
According to Mr. Hall, “In line with the Group’s decision to harvest some of the investment to position the Group to take advantage of the opportunities that would arise in the changing environment due to the pandemic; the consolidated Cash position stands at $9.9 billion.” The Cash and Liquid assets grew by 40%, moreover, the Net Worth attributable to JP shareholders rose by 17% year over year to end at $16.1 billion. According to management, ‘JP’s financial position has shown considerable strengthening during 2020.’ Investor dividend has doubled since 2017 and tripled since 2015.
CEO Jeffrey Hall added that “Over the course of the last 10 years our consolidated revenues have more than tripled and our shareholder’s equity has more than tripled. These are strong 10-year results, as such shareholders can appreciate that a series of decisions were made to build a bold new platform for the Group that commenced in a period of crisis in 2008 when the Group acquired the Fresh Juice business. We proceeded from 2008 through to 2016 with series of acquisitions that have formed the foundation for the Group today. Namely with the acquisition of Tortuga, with repurchasing parts of our shipping business, the investment in Kingston Wharves, and our investment in Coffee. We entered that Era having the capacity to do that and we believe we are entering this Era with the capacity to do it again. We set ourselves with a charge to again, over the next ten years we will try to triple the shareholder’s equity of this business by doing another round of platform acquisitions for this group. Hence, we put ourselves in a position to have the capital to do that.”
The Group remains committed to the objectives of the two operating segments:
- To build a diversified international specialty by way of the Food & Drink enterprise. This segment encompasses the businesses St Mary’s, Tortuga and Hoogesteger.
- To develop world-class Logistics & Infrastructure for the Caribbean. This Kingston Wharves, JP Shipping Services and the newly added Geest Line.
The CEO outlined the Group’s COVID-19 response as the following:
- Avoid – Readily establish safe workplace practices.
- Adapt – Implement agile measures to stay open, to serve customers and secure supplier commitment during the lockdown.
- Restore – Maintain the profitability of the business by reducing costs and securing core revenues during an extended period of adjustments due to COVID-19.
- Re-invest – Boldly capitalize on new opportunities that arise as a result of COVID-19.
All businesses are better positioned for Post COVID-19 (Outlook):
Logistics & Infrastructure:
- Digital Transformation – Lead on E-Commerce
- Diversified Cargo – Build capacity in specialized cargo types
- Caribbean Specialists – Build the regional network and the Hub
Food & Drink:
- European Juice – Move from a Benelux to a Pan-European platform
- Pivot to North America – Move Tortuga travel retail to North American Mainstream
- Tropical Food specialists – Snacks, branded: baked, frozen, and fresh
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