BERGER Paints blamed elections and political change for dampened sales in November and December, which ultimately led to a 37 per cent drop in net profit.

The paint manufacturer posted $41.3 million in net profit for the three months ending December 31, compared to $65.9 million in the corresponding period in 2010.

The company reported $560.5 million in sales, which was 1.4 per cent higher than the comparative period in 2010, but overall volumes for the quarter showed marginal decline compared with the previous year.

“Sales in the months of November and December were influenced by the uncertainties surrounding firstly the change in leadership of the (then) governing Jamaica Labour Party (JLP) and the general elections, and subsequent change in Government,” said Berger’s managing director, Warren McDonald, in the financial statements. “These changes were accompanied by a ‘wait-and-see attitude being adopted in the period leading up to the elections by the business community.”

According to McDonald, sales were growing at a rate of seven per cent year-on-year during the first seven months of its financial year (April to October 2011).

“It is expected that once the political climate settles, sales will again regain the growth trend shown in the first seven months of the financial year,” he said.

Operating expenses increased by 9.9 per cent, from $453.3 million during the three months to December 31, 2010, to $498.5 million during the review period.