JP Group puts on solid Q3 performance
JP Group CEO Jeffery Hall
For the 2019 third quarter, Jamaica Producers Group Limited (JP) generated revenues of $5.2 billion and net profit attributable to shareholders of $330 million. Year-to-date results show a $1.1 billion increase in revenues with both business segments – Logistics & Infrastructure (L&I) and Food & Drink (F&D) – generating improved third quarter and year-to-date revenues and profits relative to 2018.
Jeffrey Hall, chief executive officer of JP commented on the strong third-quarter results for the group, “we have grown our earnings rapidly by investing in precisely those industries that we believe can deliver significant growth for Jamaica.” JP doubled its profits in the third quarter and increased its year-to-date profits by over 60 per cent relative to the prior year.
“We’ve grown our agriculture business with market-leading technology and productivity at our JP St Mary’s farms. We’ve expanded tourism linkages and value-added manufacturing exports with our Tortuga rum cake business. We’ve made a hugely successful investment in global services and logistics with Kingston Wharves,” noted Hall.
The company achieved revenue growth in its combined St. Mary based banana and pineapple farming business of 40 per cent relative to 2018.
Hall commented on this growth to say that “Jamaicans are eating more of our locally grown fresh produce and this is improving the prospects for our farms.”
JP further reported that it had won new business for Tortuga in Mexico, the Dominican Republic and with major US retailers and would be building on this with the launch of the all-new Tortuga Jamaican Rum Fruit Cake this Christmas.
Meanwhile, Kingston Wharves, Jamaica’s leading multi-purpose port and logistics business reported year-to-date earnings up 29 per cent.
“There is more growth for Jamaica in all of the industries in which JP is investing,” stated Hall. With the capital that is now available for investment. Hall opined that small urgently needed tweaks to government policy could unleash that growth. He expressed the view that GDP growth in Jamaica will require stakeholders to focus now on attracting new investment, providing globally competitive services and enhancing innovation and productivity in manufacturing.
According to Hall, the opportunities are big enough for everyone to participate and JP is more than willing to work with key stakeholders to spotlight those opportunities that can immediately deliver employment and growth in each of its key sectors.
The L&I Division, which comprises Kingston Wharves and JP Shipping Services Limited, generated 2019 year-to-date profit before finance costs and taxation of $2.4 billion, a 19 per cent increase over the prior year. Divisional revenues of $6.3 billion were up seven per cent over the prior year.
JP’s F&D Division continues to be the largest contributor to the revenues of the group earning year-to-date revenues of $9.0 billion and profit before finance cost and taxation of $645 million, more than double the prior-year result of $310 million.