WISYNCO Group Limited is looking to add another 400 persons to its employee roster to meet the demands of local and international markets.

The company has been executing the expansion of its production capacity over two years which has seen it pour $5.76 billion (US$37.22 million) in capital expenditure over the last nine months in installing new production lines, warehouse and its expanded LNG (liquefied natural gas) plant. The manufacturing and distribution giant spent $2.37 billion in its 2023 financial year on the expansion, which is set to nearly double its production capacity.

The company will now host a job fair with the Ministry of Labour and Social Security on May 21 at the Celebration Church, Portmore, St Catherine as part of its recruitment drive for new talent. Wisynco has already created about 170 new jobs between November and April with the company seeking to add more engineers and machine operators for its high-speed filler machines and new production lines at its Lakes Pen, Portmore, headquarters.

“With all of the new developments that we’re doing in terms of production, operations, sales and the commercial side, we’re going to need probably another 300-400 people to be hired over the next couple of months coming into the summer,” stated Wisynco Chairman William Mahfood in a call with the Jamaica Observer on Tuesday.

Wisynco was able to install a new manufacturing line in February and April which has started to contribute positively to meeting local consumer demands. Wisynco had to jettison its export growth plans in 2023 to focus on the local market due to growing demand and had pushed to max out its production capacity, but still fell short of the desired order volumes. Wisynco manufactures its proprietary products like Bigga, Wata, Boom and Cran Wata while distributing products like Coca-Cola, Tru-Juice, Red Bull and Worthy Park Estate rum products.

This increased demand has been reflected in the company’s revenue which has been above $13 billion for three consecutive quarters with its first quarter (July to September) peaking at $13.72 billion. Its third quarter (January to March) saw revenue rise nine per cent to $13.10 billion despite cooler temperatures and its new equipment not yet operating at optimal capacity. The overall nine-month revenue figure is up 11 per cent to $40.08 billion, marginally behind 2023’s record $48.71 billion record.

“Going into the summer months as demand ramps up, production and operational capacity are ramping up, we’re going to start to see significant increases from those two new production lines,” Mahfood added, noting that shareholders should begin to see the impact of the new production lines in the current quarter.

However, he pointed out that the company is delaying the installation of a third production line to not disrupt its momentum heading into summer. That new line will come on stream around September which will be reflected in the second quarter (October to December) numbers.

Wisynco’s third-quarter gross margins were relatively compressed from 34.6 per cent to 33.5 per cent due to lower production output in February and March, plus overheads from the new machinery not yet absorbed. When combined with its operating expenses rising 18 per cent to $3.17 billion, its operating profit dipped by 15 per cent to $1.30 billion.

One positive note is that its 30 per cent associate, JP Snacks Caribbean Limited, delivered a profit which resulted in Wisynco recording a $701,000 share of profit relative to the $16.06 million share of loss in the prior period.

Despite higher finance income and reduced finance costs, profit before taxation was down eight per cent from $1.57 billion to $1.43 billion. A smaller tax bill resulted in net profit rising two per cent to $1.18 billion and earnings per share (EPS) remaining flat at $0.31.

Wisynco’s nine months operating profit was also down five per cent to $4.59 billion due to the higher operating costs from increased marketing costs, new team members and other expenses. Profit before tax was marginally up four per cent to $4.99 billion with net profit coming in eight per cent higher at $3.95 billion and an EPS of $1.05.

Wisynco’s total assets were up 11 per cent to $32.88 billion with its property plant and equipment nearly doubling to $12.61 billion. It also deployed an additional $2.39 billion into investment securities now worth $3.73 billion while cash and cash equivalents decreased to $5.06 billion. Total liabilities and shareholder’s equity were $8.55 billion and $24.33 billion, respectively.

Domhad Investments Limited emerged as seventh-largest shareholder with a 0.77 per cent stake at the end of March, which is an upgrade from being the 10th-largest shareholder in December 2023. Wisynco executive directors Andrew Mahfood and François Chalifour bought more shares during Q3 while Devon Reynolds and Lisa Soares Lewis sold shares during the period. Senior managers Christopher Ramdon, Neville Craig Clare and Tabitha Athey bought more shares during the quarter, as well.

Wisynco’s stock price decreased one per cent on Thursday to $20.30 which left the stock down six per cent year-to-date with a market capitalisation of $76.35 billion. With a trailing 12 months EPS of $1.38, this translates to a price-to-earnings ratio of 14.71 times.