Berger Paints’ first-quarter earnings dip
A year after raking in a profit of $7.7 million, paint manufacturer, Berger Paints Jamaica Limited (BPJL) has posted roughly half that amount for the three month period ending March 2019.
Both revenues from contract with customers and Berger’s net profit for the first quarter 2019 dipped 1.6 per cent to $498 million, and 49 per cent to $3.9 million respectively. Earnings per stock also fell to $0.02 year on year.
Chairman of the company, Adam Sabga blamed the reduction in revenue amount on increases in fiscal management of receivables and the tightening of credit trade terms.
Inventories of finished and work in progress goods plummeted to a loss of $13.5 million from earnings of $22.3 million for the January to March quarter of 2018.
“There was a 5.4 per cent increase in cost of sales when compared to the prior period arising from supplier increases and the fluctuating value of the Jamaican dollar during the period, with swings from a decline of 7 per cent in January to an appreciation of 1 per cent by end-March also affected our results,” Sabga said.
He added that with management's continued focus on controlling expenses, total expenses for the quarter amounted to $231.83 million. That represents a decrease of 6.3 per cent when compared to the corresponding quarter ended March 31, 2018.
Strengthened by its merger with ANSA Coatings Jamaica Ltd (ACJ), BPJL said in its 2018 annual report that is targeting new regional territories for 2019.
The manufacturer is looking to expand its offering with new products that are “ideally suited” to the needs of the new markets.
ANSA McAL Group is the leading conglomerate in the Caribbean with 73 companies spanning nine sectors in over eight territories and holds a major share in Berger Paints, the parent company of BPJL.
“Realignment of our market focus is very much on our agenda for 2019, and through diligent partnerships with local stakeholders, we expect this direction to yield improved returns,” the chairman said.
BPJL closed the first quarter with assets of $1.82 billion, marginally above the $1.67 billion posted in the comparative quarter of 2018. Cash and cash equivalents of the company improved to $511.4 million.