In the aftermath of a less than colourful 2023 which saw most of its segments coming in flat, Berger Paints Jamaica Limited (BPJL) welcomed improved performance from its retail business as the company continued to benefit from an expansion of its Colour Shop network.

The segment, after growing revenues by almost 23 per cent year on year, the directors said, was largely impacted by “the launch of an additional Colour Shop in Fairview, Montego Bay, in 2023, along with a number of tactical marketing campaigns and promotional offers”, which it implemented to boost sales.

At the end of the 2023 financial year ended December, total revenues for the company amounted to $3.4 billion — 2 per cent or $64 million above that of the prior year. However, the company recorded a loss of $218 million driven by heavy expenses of $1.6 billion after foreign exchange losses as well as the increases in security and information systems, advertising and promotional costs, critical hires and other administrative costs negatively weighed on the bottom line.

Performances across the other segments were also to some extent negatively impacted.

The hardware channel, which suffered a decline, was impacted by fill rates brought on by raw material supply delays and plant expansion projects throughout the year, while similar challenges which affected the availability of product supplies, notwithstanding a 5.7 per cent revenue growth, also pressed on the automotive channel. The projects channel, which, on the other hand, managed to surpass prior year sales volumes, grew some 17 per cent following increased activity in hotel construction activities.

“Though the full-year performance was somewhat sluggish, we were buoyed by the fact that the last quarter of 2023 rebounded with a 357 per cent increase in profit before tax. We expect a spur in economic growth in 2024 as we optimise our key business strategies that through our collective efforts will drive success and create lasting value for BPJL,” Chairman Adam Sabga said while noting that it is also the hope of the board and management that the company’s decision to reinvest will bear fruit in 2024 and beyond.

Notwithstanding the shortfalls and bullish on plans to build a more resilient and sustainable business, Sabga said the company will, however, continue to invest in the right resources to drive accelerated growth and to push its performance trajectory.

Among a slew of strategic investments and initiatives on which it plans to embark in the future are the company’s focus on the improved use of technology to drive speed and accuracy as it also undertakes capacity improvements, expand visibility and portfolio availability to improve the customer shopping experience. An increased focus on portfolio management, the company said, will also allow it to zoom in on key product types and in the right value segments.

“We are confident about the future, and will continue to retool the business and implement at scale and pace the strategies required to deliver a significantly stronger performance in 2024 and beyond. We will continue to invest in infrastructure, people, and technology to capitalise on growth opportunities and to deliver on our value proposition in the market,” the chairman also said in the company’s recently published annual report.