THE Wisynco Group has indicated that it’s starting to see a return to normalcy as it gears up to catapult its growth through several multi-billion-dollar deals planned for 2022.

This comes as the company’s revenue climbed by 19 per cent to a historic $9.49 billion for its second quarter ending December 31, 2021.

The manufacturing and distribution giant explained that its business activity has picked up quite considerably since the company’s 2022 financial year (FY) started on July 1. These include the hotels returning to pre-COVID levels and food service (restaurants) businesses seeing a steady increase in commercial activity. This is in spite of the lockdowns which were implemented in the company’s first quarter.

“I think Wisynco saw in the fourth quarter of 2021 normalcy resuming. We see a huge runway ahead of us for different projects that we have planned. We have healthy cash reserves for strategic investments and for dividends to provide greater returns to our shareholders,” stated Chief Executive Officer Andrew Mahfood at the company’s virtual annual general meeting held on Tuesday.

This increased demand has also been translated to the international markets where the company saw exports grow by 103 per cent during its second quarter. Although 74 per cent of the company’s revenue is derived from products it manufactures and distributes through strategic partnerships, it is aiming to grow that share to 85 per cent in the future. Wisynco recorded $31.82 billion in revenue for its 2021 FY and saw its six months revenue increase by 16 per cent to $18.70 billion.

“What we’re seeing in six months without those other areas, we believe that we have great things to come. We do have one or two more good things to announce coming up with import relationships which will probably come within another couple weeks,” Andrew commented on the company’s expectations for the remainder of the year without the significant contribution from entertainment and schools.

With a cash balance of $8.91 billion and bank’s coming directly to Wisynco, Andrew explained that the company will be looking to execute one project which is expected to cost between US$20 – $30 million ($3.15 – $4.73 billion) in beverage machinery plans. The company paused a number of investments when COVID-19 occurred in March 2020.

“We have a mass of capital expansion and projects that are under review right now. Some will get triggered within the next three months, some might be slightly longer term, but we have identified some excellent projects that will bring additional revenue growth down the road as well as cost efficiencies,” Andrew added.

One of these projects being executed is the leasing of a 26,000 square feet warehouse facility from the Factories Corporation of Jamaica in Hague, Trelawny. It expects to open the facility by March or April, which will expand the reach of the company on the western end of the island and further build on improved customer relationships. It will also cut down the six-hour driving that its drivers need to execute to deliver goods.

“This warehouse is going to be focused on giving us increased availability and execution at service levels for our customers. There won’t be any significant savings, but the increased volumes or revenue from that location will hopefully drive reductions in our overall costs,” said Chairman William Mahfood.

While Wisynco’s cash reserves give it leverage to execute on a variety of projects, many people have questioned the company’s decision to keep such a large holding of cash. Cash and short-term deposits made up 37 per cent of Wisynco’s $23.95 billion asset base as of December. The company had a two per cent dividend yield in FY 2021.

“We went through a number of concerning quarters with uncertainty around the pandemic. Your board felt that it would be prudent to ensure that we were prepared for any outcome. I think we’ve seen the worst and will pay $751 million in March to shareholders as dividends. We’ll continue to look at opportunities to deploy this cash in terms of inorganic growth through some acquisitions and we have a number of opportunities which we hope to come to fruition,” William explained in response to a shareholder.

While William couldn’t give an update on the paused Anheuser-Busch distribution plans, he did explain that Wisynco wants to improve its presence in the beer industry. He explained that local brewery Royal Jamaica has selected the company to distribute their beer and that a sorrel flavour will be added shortly.

The CEO also outlined that its clients such as TruMilk, St Mary’s, WP Select and Worthy Park will be launching additional flavours and products to the market in short order. He explained that this would be coupled with the company’s own innovation under its ‘Wata’ brand and investments for digital transformation would be on the agenda for 2022.

Though William noted that the ‘Sweet’ brand is still in use through its co-packed products in the Dominican Republic, he lamented the fact that the company’s Styrofoam plant closure and increased importation of alternatives under the Government’s measures hurt 120 employees who lost their jobs and is costing the country in additional foreign exchange.

Wisynco’s net profit for the second quarter grew by 74 per cent to $1.16 billion with the six months figure at a record $2.13 billion. Shareholders equity is 18 per cent higher at $17.20 billion with $2.57 billion generating in operating cashflow for the six month period. Wisynco’s stock price closed 12 per cent higher at $19.83 after the publication of its earnings.

“I want to thank all of our shareholders because it is the confidence that you have in myself, the board, CEO and management team to continue to support your business. We have had a difficult time through the pandemic in 2020. As we came into 2021, we’ve seen a tremendous rebound in the economy and we really have to give thanks for tourism. All of the persons who were directly supplemental to the tourism industry are all consuming more of our products and we give thanks for that fact,” William closed.