CPJ profit rises on expanded product offerings, improved sales channels
AN expanded line of product offerings as well as the development of existing sales channels, including its online retail store, were said to be the primary drivers of improved performance recorded by speciality food distributor Caribbean Producers Jamaica Limited (CPJ) for its second quarter ending December 2023.
Earnings of the company rose 20 per cent year on year to US$2.09 million on revenues, which also saw an uptick in performance to US$40 million at the close of the quarter. CPJ’S improved performance was amid supply chain challenges and disruptions from ongoing conflicts along its supply routes.
Chairman of the company Mark Hart reckons that supply chain disruptions may cause logistics challenges and potential increases in freight costs over the next few months. But in reassuring shareholders, he said the company has been working on defence mechanisms, including building up inventory supplies and deepening relations with key customers.
Accordingly, total assets of the company increased by US$6.42 million when compared to the same period of 2022, largely due to higher-than-normal levels of inventory to ensure consistency in product supplies. The company is also carrying more cash, up US$246,000 year on year.
“As we look forward to a busy third quarter, CPJ will continue to strive to provide the highest levels of service and quality products available,” Hart said in the preamble to the Q2 results.
Hart is upbeat on the outlook of the company from projected increases in sales, the completion and commissioning of its expanded manufacturing plant, the opening of new stores in St Lucia, alongside expectations that the general business environment will improve.
Hart says CPJ is positioning itself to take advantage of the “unprecedented expansion” in the number of available hotel rooms particularly at the west end of the island, some of which are already in advanced stages of development.
Internally, the company expects to improve efficiency through its energy-saving project, the commissioning of which should take place “soon”. Additionally, CPJ continues to explore information technology systems that will yield reduced costs, improved customer service and efficiencies.
In December, CPJ signed a contract with an international company to replace and implement a new integrated ERP system, through which it hopes to advance business-to-business (B2B) and business-to-customer sales (B2C).
Meanwhile, Hart says that CPJ is at an advanced stage in the expansion of its manufacturing plants and other operational areas, which, when completed, will give the company expanded production capacity and will also improve efficiencies. The expansion of the manufacturing plant related to meats is costing more than US$3 million.
Caribbean Producers is a distributor of wines and spirits. However, in recent years, the company has been growing both its manufacturing footprint as a processor of meats, as well as its retail arm, known as CPJ Market. The meat plant expansion is intended to increase capacity to meet demand from hospitality and retail clientèle.