RED Stripe's $200-million investment in Celebrations Brand — a distribution joint venture with Pepsi Cola Jamaica — began paying off in its first quarter of operations.
The company, which takes orders, delivers and maintains coolers and trade dispensing equipment for the brewer and soft drinks companies, made $23.8 million in profit — half of which went to the Red Stripe's bottom line — from $1.8 billion in revenue during the three months to June 30.
The beer manufacturer's domestic revenue climbed from 14 per cent, from $1.87 billion (excluding sales tax) for the three months to June 30, 2012, to $2.1 billion during the review period, but profit for the local segment fell by five per cent to $523 million.
Business overseas offset the domestic decline by generating $304 million in profit during the quarter, which was $26 million, or nine per cent more than year-earlier levels.
As a result, Red Stripe's pre-tax profit jumped 28 per cent, from $281 million to $359 million.
However, considerably higher corporate taxes dragged down the bottom line from $422 million during the end-June quarter last year to $149 million during the period under review.
Tax credits mainly related to property, plant and equipment, totalling $139 million was recognised in the profit and loss account in the corresponding period in 2012, while a tax charge of $210 million was applied to the profit in the review period.
"In 2012, the tax charge was positively impacted primarily by a deferred tax credit associated with the unwinding of the accounting treatment which previously revalued certain items of plant, property and equipment," said the company in commentary accompanying its financial statements.