The continued boom in real estate and construction activities locally is expected to further impact the growth momentum for Berger Paint Jamaica Limited (BPJL) as it anticipates increased earnings this financial year, which its directors said has already began to exceed that of the prior year.

For the financial year ended December 2021 the company’s revenues grew 31 per cent to total $3.1 billion when compared to the $2.3 billion earned from sales in 2020. This was matched by significant upticks in net profits which ballooned to $123 million up from 11.6 million in 2020. Total assets for the year also climbed to $2.3 billion.

“As the economy continues to show signs of recovery, I am happy to report that the [first quarter] of 2022 has started positively, and we are presently trending ahead of the same period in 2021,” stated Shashi Mahase, general manager of BPJL in the company’s recently published annual report posted with the Jamaica Stock Exchange (JSE).

“The lessons learnt from the experiences in operating in the ‘new norm’ have created many opportunities and we have begun to see these initiatives bearing fruit. The synergies being developed across our sister subsidiaries within the construction sector in Trinidad, Barbados and Grenada allow a collaborative approach to common challenges and creates a cohesive approach to our operations, supply chain and the regional market space,” added Chairman Adam Sabga who further noted his team’s “commitment to delivering stronger results and an overall business transformational performance in 2022.”

The successes reaped from its Boldly Berger campaign, which was launched to recoup lost earnings from the novel coronavirus pandemic, saw the company targeting increased patronage from the hospitality and residential segments following a number of renovation and spruce up projects undertaken in these areas.

BPJL, which has been publicly listed since 1992, is a subsidiary of the larger regional conglomerate Ansa Mcal Limited and remains one of the largest paint manufacturing entity in the English-speaking Caribbean, having approximately 95 per cent of its products manufactured locally. The company, which manufactures and distributes decorative, industrial and wood coatings among other paint-related material, is also a distributor of automotive coatings.

Despite reductions in export sales and earnings from some product lines, the paint manufacturing and distribution company said that overall its total litres sold in 2021 was approximately 714 kilolitres more than that of the previous year.

“Of the products offered, there was growth of 14 per cent in our Berger product lines and 26 per cent growth in our Magicote product lines. Our Berger offerings accounted for 70 per cent of total litres while Magicote offerings accounted for 26 per cent. There was also growth in our supporting fighter brand Penta as we sold 32 per cent more in 2021 than in 2020. Although this represents only two per cent of overall litres, initiatives in 2022 should see this brand penetrating the market more effectively to compete against competitor brand offerings,” the company further said in its assessment of the financial performance.

Acknowledging current challenges which includes the continuation of supply chain disruptions and raw material availability which could dim its forecast, the company said it was optimistic in its growth prospects for the remainder of this year.

“The Jamaican economy is performing well in respect of a few macro indicators, and we look forward to continuing positive and focused fiscal management. We expect that domestic sales will continue to grow as our strategies have been developed around key aspects of the business,” the company shared in its outlook.