LOCAL conglomerate Jamaica Producers Group (JP) has proposed to revise its dividend policy in August in order to reflect changes in its business over time.

“As a matter of good corporate governance it is appropriate to review the dividend policy periodically and as the business evolves,” stated JP managing director Jeffrey Hall in written correspondence to the Business Observer. The group paid shareholders an ordinary interim dividend of $28 million in 2009 and $46.8 million in 2008 according to page 26 of JP’s latest annual report.

Following a meeting of JP board’s executive committee held on June 24, 2010, it was decided that the JP board will consider a new dividend policy at its next meeting in August. Shareholders were advised via a notice on the Jamaica Stock Exchange yesterday.

“The board will then decide on a new policy as well as a dividend consistent with it. The next meeting of the board is planned for 12th August, 2010,” stated the notice on the JSE.

JP has been diversifying from its core agricultural base to include the manufacture of juices, chips and most recently the mining of aggregate. JP posted 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.