Berger Paints Jamaica Limited (BPJL) on Friday last reported a slash in its after-tax profit for the financial year ended December 31, 2019 due to the challenges posed for the Jamaican manufacturing sector, according to Adam Sabga, chairman of BPJL.

“The 2019 financial year was challenging for the Jamaican manufacturing sector in general. Increased volatility in the foreign exchange market – where the Jamaican dollar devalued on average 3.2 per cent, reaching a low of $142 to 1 US dollar in November 2019 – massive disruptions due to extensive roadworks across the island adversely impacting our direct customers and consumers within key trading territories, and inclement weather in [quarter four] presented disruptions to project schedules and coating products,” Sabga stated in BPJL’s financial report to stockholders.

Net profit for the period under review amounted to $29.3 million, compared to the $173.6 million recorded for the corresponding period in the prior year.

However, despite these factors, BPJL recorded revenues of $2.5 billion for the period under review.

Sabga further assured that BPJIL, with strategic foundations now in place and revenue initiatives and cost efficiencies being aggressively pursued, is poised for transformational performance in 2020 and future years.

“In September BPJL implemented a new [enterprise resource planning] system which provides a fully integrated manufacturing and financial platform. I am pleased to advise that, barring the normal teething issues, the system has settled and is providing the required details and analytics to drive the business into the future. The introduction of a new automotive line [Roberlo] has been added to our portfolio and will deepen BPJL’s reach into the automotive market,” the chairman stated.

“Year-to-date February 2020 performance indicators are ahead of 2019, with signs of a positive trajectory. While fluctuations in the Jamaican dollar remain a concern. Jamaica’s other major economic indicators are trending in a positive direction — an upgrade in its credit ratings, achieving wage-to-gross domestic product (GDP) target of nine per cent, and debt-to-GDP ratio falling below 100 per cent.”