Wisynco Group Limited is moving to complete the final stages of its multibillion-dollar expansion project as it seeks to meet rising demand for its wide range of products.

The manufacturing and distribution outfit was able to deliver a strong second-quarter performance with revenues exceeding $13.25 billion as its production capacity continues to be maxed out. To help meet the demand for its products, the company installed a new, high-speed filler machine in the third week of December. That machine reached full capacity last week and has now helped Wisynco to increase its drinks production by 20 per cent. A second additional manufacturing line is set to be operational by February with the third line by early April. One of the lines will be for Wata production while the other will be for carbonated and non-carbonate drinks produced by Wisynco. Together, all three lines should boost Wisynco’s beverage output by 60 per cent.

“Most of that growth is really coming from improved efficiencies in production… We hired over 100 people in the last two months just to put us in preparation for all of this expansion,” said Chairman William Mahfood in a call with the Jamaica Observer on Friday on the company’s financial performance.

While the company has been able to grow its half-year volumes by 10 per cent, its gross margins were somewhat compressed in the second quarter as it was reduced from 34.7 per cent to 33.3 per cent. This was due to production constraints in the last two months of 2023 which impacted the product mix between its proprietary manufactured products and the third-party products it distributes.

As a result, its gross profit for Q2 only grew five per cent to $4.41 billion. However, its operating profit shrunk by a 10th to $1.36 billion due to the company’s operational expenses, arising from the additional staff onboarding along with inflationary costs in the areas of insurance and security. Despite this relative reduction, Wisynco’s net profit marginally improved from $1.21 billion to $1.22 billion as its finance costs and taxes were lower for the period under review.

When asked if the company would be introducing new products following the newly installed manufacturing lines, Mahfood responded, “These first few months are going to mostly be focused on filling the consumer needs for the existing products.”

Wisynco has noted the substantial demand for its proprietary products in the last year which includes brands like Wata, Bigga, and Boom. This has led to it reducing some of its export growth plans to meet the local demand. Nevertheless, the company is looking to return to doubling its exports in short order as its Bigga brand gains more traction in the European market, with it being featured in different photos from sporting events.

Wisynco is also continuing its search for additional warehouse space across the island to deepen its distribution presence. Wisynco took on the Jamaican Teas Limited portfolio on November 1.

Wisynco’s half-year revenue is up 12 per cent to $26.98 billion, with its gross profits up eight per cent to $9.22 billion. Operating profit remains marginally below the period at $3.29 billion, but its net profit remains up 10 per cent to $2.77 billion. Earnings per share (EPS) for the half-year went up from $0.67 to $0.74, with the trailing 12 months EPS at $1.38.

Wisynco’s total assets are up four per cent for the half-year to $33.75 billion, with the company’s non-current assets topping $13.53 billion. The company spent $2.95 billion on capital expenditure, which pushed its property, plant, and equipment up to $9.99 billion while also putting an additional $1.54 billion into investment securities which ended the period at $3.99 billion. As a result of these investments, Wisynco’s cash and short-term deposits decreased to $7.53 billion. Total liabilities and shareholders equity closed the period at $9.80 billion and $23.94 billion, respectively.

Wisynco’s share price decreased on Monday to $21.90, which leaves the stock up 1.86 per cent year to date, with a market capitalisation of $82.37 billion. This translates to a price-to-earnings ratio of 15.87 times. The company declared a dividend of $0.23 to be paid on March 7 to shareholders on record as of February 20. This payment totals $865.09 million.