CPJ sees profits surge in Q2
CARIBBEAN Producers Jamaica (CPJ), headed by Mark Hart posted impressive profits for the six month period ended December 31st, 2013.
For the food and beverage distributor, headquartered in Montego Bay, unaudited results for the six months ended December 31, 2013 reveals a gross operating revenue of US$37.5 million generating an operating profit of US$2.63 million.
This compares most favourably with the same period in 2012, which saw a gross operating revenue of US$30.72 million generating an operating profit of US$1.41 million. For the period under review, gross revenues increased by US$6.7 million or 22 per cent while net profit attributable to shareholders came in at US$1.62 million compared with US$539,000,spelling a whopping threefold increase over December 2012 results.
CPJ attributes its good fortune to increased revenue streams arising from the additional output from manufacturing operations and the introduction of retail outlets in Kingston.
Consequently, selling and administrative expenses for the six-month period increased by US$1.2 million, standing at US$7.81 million as opposed to US$6.61 million for the same period in 2012.. The lounge bar CRU and the other retail outlets situated in the Clifton Yap- built complex on Kingston’s Lady Musgrave Road was a significant undertaking and announced CPJ’s presence as a significant player. This business arm will take some time to get up to speed given the contractionary environment that currently prevails in Jamaica.
However the CPJ management remains undaunted and is committed to growing revenue streams. To this end it has appointed Dr. David Lowe to the newly-created position of chief revenue officer. He previously served as vice president of marketing and retail sales. In his new role, Dr Lowe will lead CPJ’s revenue strategy which includes expansion into markets outside of Jamaica.
CPJ did take a hit on finance costs which increased by 14.5 per cent to US$981,477 from US$857,384 for the six-month period in 2012. The Group puts this down to an increase in short-term borrowings as a result of higher inventory and trade receivable balances compensated by increased sales for the Christmas period.
CPJ’s joint venture stake in Caribbean Egg Processors has to date not fared too well with it suffering a US$32,000- loss there. It attributes this loss to an impaired supply of shell eggs due to the local market shortfall.
According to CPJ’s balance sheet, total assets grew by 19 per cent to US$47.4 million compared to the corresponding period in 2012. Financing these assets were liabilities of US$32.7 million and equity of US$14.6 million. Current assets rose by US$7.3 million or 25 per cent over the same period in 2012. Accounts receivable increased by US$2.9 million or 24 per cent.
Earnings per stock increased to US$0.148 cents from US$0.049 cents.
CPJ has aggressively added arms to its operations and has ventured beyond being solely a distributor. In less than two years it has entered the egg business, retail and entertainment. It is fast becoming a significant local investor at a time when other companies are recoiling
from putting money into the ground.
Not content to just reside in Jamaica and ever mindful of bolstering foreign exchange earnings, it has entered a joint venture with the Du Boulay Bottling company in St Lucia to operate a full-service distribution company to be known as CPJ St Lucia which should come on stream later this year.
Speaking with Caribbean Business Report from Miami, chairman of CPJ Mark Hart said: “We are very pleased with the results posted for the second quarter, which marks a significant improvement on the same period in the previous year. The plan now is to grow the company via the retail side and to establish more manufacturing plants. We also intend on attracting and representing some notable brands.
“We are now preparing to sign a major contract with an international service provider which you will hear about quite soon.
“As you know, CPJ is hospitality-based and we see it as a growth industry throughout the Caribbean.
“We are looking forward to our new project in St Lucia and will begin distributing there in July of this year, which is the start of our financial year.”