JFP expands distribution to the Caribbean
In keeping with a commitment made to its shareholders this year to deepen its footprint across the Caribbean and United States, JFP Limited (formerly Jamaica Fibreglass Products) has entered into a distribution alliance with Total Office Limited.
As per the agreement, which was signed on April 25, 2022, JFP will supply the Trinidad-headquartered Total Office with furniture, cabinetry and other related products to meet the demand of its clients in Antigua, Suriname, Guyana, Barbados, the Dutch Antilles, among other Caribbean countries. The agreement has a tenure of two years, but is renewable thereafter.
“This is a great opportunity for JFP and whilst we are not currently expanding our production equipment or production team, we do anticipate that this will have to be done to meet the expected demand of our products and service,” Metry Seaga, CEO of JFP Limited, commented.
Though he refrained from giving an estimate on the value of the partnership with Total Office, he assured that the projected pipeline for JFP’s commercial contract furniture manufacturing operations will be significant. He revealed that the partnership was as a result of working alongside Total Office on a project in Barbados.
“We approached them to discuss a possible partnership and we were able to make it happen,” the JFP CEO told the Jamaica Oberver, adding that at present both companies are still negotiating a timeline for the shipment of the first order.
JFP will supply both office furniture and hospitality furnishings to Total Office, which has an aim for this year to boost its hospitality division. Seaga expressed hope to maintain the relationship long term beyond the initial agreement.
Founded in 1989, Total Office is a regional supplier of commercial office products to both large and small organisations. Among its product offerings are vinyl and carpet flooring products, window treatments, high-density storage units, and wire management systems. Its clients include Scotiabank, KPMG, and Republic Bank of Trinidad and Tobago.
In addition to its headquarters in Trinidad and Tobago, the company has offices in Jamaica, Barbados and Guyana. In fact, it is an exclusive distributor of Steelcase Inc office furniture in both Trinidad and Tobago and Guyana.
“We are very much looking forward to working with JFP and are confident that together, we will deliver regional distribution, industry-leading service and world-class Caribbean manufacturing, with excellent quality and turnaround time. Together, we will help create great spaces,” Ryan Proudfoot, managing director, Total Office, told Business Observer.
Seaga pointed out that his company’s partnership with the Total Office demonstrates the commitment he made to shareholders during the listing of JFP shares on the Junior Market of the Jamaica Stock Exchange in February this year.
“Our strategy for growth is compelling and we are seeing the results of all the work our team has put in place. We made commitments to our shareholders earlier this year to deepen our footprint across the region and United States and we are doing just that,” he said.
JFP’s first-quarter results for 2022 indicate a 70 per cent increase in revenue, which rose from $64.7 million in 2021 to $110.2 million. Gross profit for the period ended March 31, 2022 improved by 168 per cent to $77.3 million.
Despite a significant increase in administrative and selling expenses, JFP’s operating profit before tax grew for the quarter grew by 302 per cent over $8.7 million earned in 2021. Operating profit stood at $34.9 million at March 31, 2022.