Jamaica Producers Group (JP) put in a strong performance across its core businesses over the first quarter ending April 3, 2010, resulting in a 65 per cent net profit increase relative to the comparative period last year.

The group’s net profit for the period under review was $68.3 million, compared to $41.3 million for the 2009 first quarter. Group revenues grew by 21 per cent to $1.5 billion over the 2010 first quarter compared to the comparative period the year prior.

Buoyed by growth in revenues and operational efficiencies in both its JP Europe and JP Tropical divisions, the group posted operating profit of $46.3 million, a $66.9 million reverse from its position in the 2009 first quarter when it posted operating losses of $20.6 million.

JP Europe, which comprises the group’s Netherlands-based fresh juice operations and its logistics business in the UK, earned pre-tax profits of $62.7 million, more than three times the $18.9 million earned in the 2009 first quarter. Revenues of $1.2 billion over the period under review represented a 22 per cent increase over the corresponding period last year. In its financial report, the firm made special mention of the creditable performance of the fresh juice business, which represents the bulk of JP Europe’s operations.

Speaking with the Business Observer yesterday, JP managing director Jeffrey Hall said that the positive performance for the juice business reflected operating efficiency and a return to growth in sales volumes in the some European markets which had been experiencing economic uncertainty. He identified Netherlands, Luxemburg and Belgium in particular.

“I would say that those countries are beginning to see a return to economic normalcy at the consumer level,” he said, adding, however, that the company is mindful of the potential adverse impact of currency weakness in Europe.

JP Tropical – the division which comprises businesses that are centred in the Caribbean and Central America and includes the production of snacks, fresh fruit and drinks – more than doubled its pre-tax profits over the period under review to $19.2 million, compared to the 2009 first quarter. Revenues were $352.7 million, a 20 per cent increase over the comparative period last year.

Hall said its tropical snacks and fresh produce businesses were boosted from increased investment in brand development and marketing.

“We are gratified by the customer response to our product offering and our marketing,” said Hall, who noted that JP’s newer snack lines of cassava, sweet potato and plantain all achieved “double digit growth”.

Indeed, JP was particularly aggressive in its marketing of bananas over the first quarter, as it promotes the consumption of the local produce. The marketing campaign, which has enlisted the likes of track and field stars Asafa Powell and Shelly-Ann Fraser, was a background to the company’s banana sales growing by 32 per cent over the period under review compared to the 2009 first quarter.

The financial report said that although the firm achieved strong growth for its core products in Jamaica, it is mindful that future growth is constrained by the size of the market. Therefore, it said, JP will proactively be expanding its product range and developing new markets in the Caribbean, Central America and the US.

Thr group’s smallest division, the Corporate Segment which comprises interest and investment income, appears to have been negatively impacted by the Jamaica Debt Exchange programme (JDX) over the first quarter. Pre-tax profit of $11 million over the period represented a 35 per cent decline from 2009 first quarter, which benefited from higher interest rates. The JDX saw Government exchange out 99 per cent of its domestic debt for new bonds at lower rates and longer maturities.

Overall, JP’s first quarter performance was a creditable improvement over last year albeit the period under review had six additional days trading in comparison to the comparative quarter ended March 28, 2009. JP at the beginning of the year adjusted the presentation of its quarterly financial statements to four equal 13 week periods, which the firm said would better reflect comparability between quarters and promote process efficiencies. Hence, the group’s four quarters in 2010 are the 13 week periods ending April 3, July 3, October 2 and December 31.