Monday 10 August, 2020

Berger Paints eyes new routes to market

Adam Sabga company chairman of Berger Paints Jamaica Limited (BPJL), in the company’s newly released annual report, says the company has used the challenges experienced in 2019 to improve operations and re-evaluate route to market.

“Sales practices, processes, and to some extent, the company’s organisational structure, have all been reviewed to position the company for growth and to better prepare for unforeseen external factors that may arise,” Sagba said.

Profit for the 2019 financial year experienced a significant decline to $29.3 million, compared to the $173.6 million, with the company citing devaluation and road works in Kingston as impediments.

“With the planned strategic foundations now in place, revenue initiatives and cost efficiencies aggressively being pursued, we are confident that Berger Paints Jamaica is poised for positive transformational performance in 2020,” the chairman said.

Berger also noted that it is making strides by re-tooling. 

For 2020, strategies are built around developing new routes to market, building on relationships with key dealers in addition to enhancing partnerships with the Master Builders Association, the Jamaica Institute of Architects and the Jamaican Hotel Industry, the annual report said.

Berger Paints will also be adding new products to further bolster coating products.

It currently manufactures and distributes decorative, industrial and wood coatings, paint-related material and is a distributor of automotive coatings.

Berger Paints has also secured its Public Procurement Certification, needed for bidding on Government projects, which it indicates is an advantage over the competition.

However, the March quarter report indicates that as the COVID-19 pandemic ensued, market activity fell by 39 per cent resulting in revenue of $509 million for the quarter ended March 31, 2020.

The company faced increased costs associated with the roll out of long-term strategies and BPJL reported a loss before taxation of $41.9 million, compared to profit of $5.2 million earned in the comparative quarter.

Sagba said in the annual report that with the COVID-19 pandemic, it is projected that there will be an impact on sales.

However, he noted, “We expect that by 2021, these strategic foundations laid and revenue initiatives implemented will pay dividends and result in a better alignment of our sector teams and overall business transformational performance in 2020 and future years.”

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