BERGER Paints Jamaica recorded a 303 per cent jump in year-end profits to $62.7 million but three-quarters was made in its fourth quarter as it benefited from a four-day work week that slashed operation costs.

Profit in the fourth quarter alone was $44.7 million versus $25.1 million a year prior as the paint company benefited from the Christmas rush and increased efficiency. During that quarter, sales net of discount and rebates increased seven per cent to $542.5 million versus $506.6 million a year prior, but its increased efficiency really boosted profitability.

“Improved productivity and efficiencies, [such as] litres per man-hour, improved by 35 per cent in 2009 over 2008, emanating from the redeployment of its human resources, upgraded equipment and sourcing savings, all aided in the company’s improved performance,” stated the notes accompanying the financials endorsed by regional managing director, Warren McDonald.

The company in 2009 instituted a shorter work week in an attempt to cut expenses and save jobs. In fact, the paint company actually ended December 2009 with $100.6 million in cash and equivalents versus a negative cashflow of $20.2 million in the corresponding period in 2008.

Additionally, the company stated that tight controls over expenses resulted in a five per cent reduction in operating expenses in 2009 compared to 2008. It achieved this, “despite the 10 per cent inflation and 11.5 per cent devaluation of the Jamaican dollar over this period”.

The company, with overseas parent Asian Paints, added that its export sales volumes grew by 68 per cent in the 12 months of 2009 over 2008 “which helped to offset the otherwise docile domestic sales market”.

The company’s total equity at $896.4 million dipped 8.5 per cent over the previous year, due to cutting its fixed assets to $155.9 million from $179.4 million. Berger Paints plans to change its accounting year-end from December 31 to March 31 effective next month. This will enable the company’s year-end to coincide with that of Asian Paints. It will result in financials for this year reflecting 15 months up to March and then 12 months for each subsequent year-end.

The company’s prospects for 2010 remain conservative due to the ongoing recession.

“With the local construction industry remaining in the doldrums and with little, if any growth expected in the local economy in 2010, BPJL will continue its drive to build exports, curtail costs and, further improve efficiencies,” McDonald stated in the notes, adding that new products should increase its marketability during the recession. “…Berger intends to complete the development of several new products this year, focusing on quality and affordability in response to market demand and to introduce these products to the market later this year. It is through these efforts that the management expects the company to exit the recession a stronger company.”