Busy Yuletide boosts Berger's profit
BERGER Paints Jamaica earned $50.7 million in after-tax profit during its busy Christmas third-quarter, reflecting one-third higher in net income year over year.
Sales increased to $622 million, up six per cent year on year, during the three months to December 31, 2013, despite the soft economy and currency depreciation of some 15 per cent over the past year.
The company also kept core costs, which were up just three per cent year on year to $550 million, at bay.
During the festive season sales tend to rise based on the tradition of repainting residential and commercial complexes. However, the cash flow and equivalents position dipped to $58 million from $163 million a year earlier due to a rise in costs associated with its "operational assets".
As at December 31, the company held $521 million in equity.
Mustafa Turra, general manager of Berger Paints Jamaica, was unavailable for comment up to press time. Turra succeeded Warren McDonald, who retired last May but remained on the board as an independent director.
Berger Jamaica approved a final dividend payment of $27.8 million at its Annual General Meeting in July 2013.
The company listed on the Jamaica Stock Exchange is a 51 per cent subsidiary of Lewis Berger Limited which is incorporated in the UK. The ultimate holding is Indian-based Asian Paints Group based, which is worth US$851 million and which has a presence in 20 countries.