Wisynco Group Limited will be executing its largest-ever capital investment against the backdrop of record-breaking 2022 financial year (FY) in which its revenue jumped 23 per cent to $39.05 billion and net profit spiked 32 per cent to $4.05 billion.

At its annual general meeting in February, Chief Executive Officer Andrew Mahfood announced that the company was planning to embark on a project for its beverage machinery costing between US$20 million and $30 million ($3.15 billion – $4.73 billion).

His cousin and Wisynco Group Chairman William Mahfood has now confirmed to the Jamaica Observer that the expansion will take place in the 2023 financial year as the company plans to increase its capacity to meet the growing local and export markets. The company has already put $604.96 million (US$4.01 million) on deposits for new equipment.

The Mahfood-led company has its headquarters at Lakes Pen in St Catherine where it carries out its distribution operations and manufacturing at its White Marl location. Both properties total approximately 530,000 square feet. It also leases a 26,000-square-foot warehouse facility in Hague, Trelawny, along with temporary storage facilities in St Catherine and Clarendon.

“We’re seeing so much increased demand that we can’t keep up, and the capacity that we have is almost at its limits. We’re putting in a lot more production next year, which will increase our volumes significantly going forward. That US$20 million – US$30 million is basically the aggregate of the three major projects, which are the energy generation plant which we’re going to be building in the coming year and also major investments in two new production lines. The real effects of it will be in our financial year 2024, but you’ll still see the effects of it this year, for sure,” the chairman said in a call with the Business Observer on Monday.

While Mahfood did not provide details surrounding the final financing arrangements, he noted that the company would be using part of its $7.68-billion cash war chest to support the expansion plans.

Wisynco’s local sales grew 21 per cent to $37.30 billion while its exports grew by 71 per cent to $1.07 billion. Exports represent only 2.75 per cent of Wisynco’s overall sales.

“The capital investments coming this financial year will be some of the biggest in the company’s history. The opportunities are just endless because we really haven’t tackled the international markets in the way that I really feel we should. There are a lot more opportunities internationally and we’re seeing phenomenal growth in some of our key markets, but I think it’s still relatively untapped. In the grand scheme of things, when you look at the size of our market, Jamaica versus the United States, can you imagine if we really tapped into those markets in a meaningful way and what that would look like? I’m really optimistic as I think our team is doing a great job, no questions asked. I look forward to the continued success into this year,” the Mahfood shared.

Wisynco’s utility expenses increased by 50 per cent from $342.55 million to $514.39 million as the company faced the impact of not only higher energy prices, but also an $81-million impact in January when its two-megawatt liquified natural gas (LNG) power-generating plant was offline for about six weeks. This disruption and reliance on the Jamaica Public Service Company represented 47 per cent of the year-on-year increase in utility expenses.

Mahfood noted in February that the LNG plant has been the saving grace to limit any increases in prices to consumers. Wisynco also has a solar plant set up at its Lakes Pen location.

Wisynco has increased its inventory by 51 per cent to $5.42 billion as it continues to battle with supply chain issues. The company’s fourth quarter saw selected key raw materials being delayed, which impacted production and dampened the outturn of sales. Despite these headwinds, Mahfood is optimistic.

“I really believe that there is so much more. We have not truly unlocked the potential of what we have in terms of the business and machinery that is Wisynco. That is going to be a tremendous set-up you’ll see being unlocked in the near future,” said a beaming Mahfood.

When asked about the benefit of its new Trelawny facility, he stated, “We’re seeing tremendous outturn from it already. There’s still much to do, but we have seen a tremendous amount of new business as a result of it. Some of that is reflected in the numbers as when you look at those revenue growth numbers across the board, part of that is just being able to have a wider and improved availability of our products all over the island.”

However, the company has not been spared the wrath of sourcing talent, which is continually attracted to the tourism and business processing outsourcing sectors. Apart from stepping up its recruiting efforts, the company is working on the development of its team members as a way to ensure that they grow with Wisynco.

Sean Scott took up the role of deputy CEO on August 24. Wisynco has also welcomed board member Lisa Soares Lewis and Group Head of Human Resources Annette Morrison to strategically guide its efforts.

“We were having some challenges in terms of people because there is a real shortage of skilled team members down there. Between the hotels and call centres, there’s a big demand that’s being placed on those levels of employees. We’re really having to step up our aim as far as enticing people to come and work in the company, explaining to them the benefits of working with Wisynco and growing the company. That’s why the people development side of the business is becoming more and more important. So, we cannot only hire the right people but retain them and develop them to become future leaders in the organisation,” Mahfood explained.

Wisynco’s total assets grew 16 per cent to $25.89 billion with non-current assets at $8.14 billion and current assets at $17.75 billion. Total liabilities and shareholders equity closed the period at $8.51 billion and $17.84 billion, respectively. The company also exceeded its dividend policy ratio of 20 per cent and paid out $1.50 billion or 37 cents on a per share basis. Wisynco’s stock price traded down to $17.36, which leaves it up four per cent year-to-date with a market capitalisation of $65.22 billion.

“We’re poised for growth and we have the team to do it. In the years of my career, I don’t know that I’ve felt as optimistic about the future as I do right now, having come off two and a half years of a pandemic. You’ll see that in terms of the bookings across the tourism trade have been at the highest levels and it looks like they’re going to continue into next year. So, right across the board there’s no channel that is seeing any declines at this point. That’s the job we have as directors and executives is to increase shareholder value,” the chairman closed.