JAMAICAN manufacturer Omni Industries Limited reported a decline in revenue and profitability for the fourth quarter of 2024, citing adverse weather conditions, supply chain disruptions, and a slowdown in the construction sector.

Despite these challenges, the company highlighted significant achievements, including debt reduction, strategic investments, and operational improvements that position it for long-term growth.

Quarterly revenue fell 12 per cent year-on-year to $411 million, while gross profit declined 27 per cent to $154 million due to higher costs of sales. The company posted a net loss of $25 million for the quarter, widening by 56 per cent compared to the same period in 2023. Year-to-date revenue dropped 6 per cent to $1.93 billion, but gross profit increased by 9 per cent to $872 million, reflecting cost optimisation earlier in the year. However, net profit for the year fell by 20 per cent to $120 million due to one-off provisions related to credit loss policies on receivables.

Omni attributed its weaker quarterly performance to external factors such as Hurricane Beryl and a cement shortage that slowed construction activity. The broader economic environment also remained sluggish. Inventory levels rose by 45 per cent as the company strategically increased stock to mitigate supply chain delays and ensure consistent product availability.

Managing Director Patrick Kumst said the company’s ability to adapt amid economic turbulence demonstrated the strength of its strategy. “Our ability to navigate economic turbulence while continuing to build on our profitability underscores the effectiveness of our strategy,” Kumst said.

Despite short-term pressures, Omni made strides in fortifying its financial position. Long-term debt was reduced by 51 per cent, or $71 million, enabling a 26 per cent drop in finance costs for the year. As of 31 December, current assets exceeded liabilities by $650 million, improving the company’s current ratio from 1.70:1 to 2.26:1.

Omni achieved a major milestone in June 2024 with an oversubscribed initial public offering (IPO) on the Junior Market of the Jamaica Stock Exchange, raising $500 million. Proceeds were used to upgrade machinery and expand production capacity. In September, the company commissioned a $72-million moulding machine that increased production efficiency while reducing energy consumption and waste.

“These investments are laying the groundwork for future growth,” Kumst said. “We are preparing to launch new industrial and consumer packaging solutions in 2025 that will broaden our market reach and drive new revenue streams.”

While quarterly results were impacted by one-off adjustments related to credit loss policies on receivables, Omni said these provisions were necessary to position the company for financial stability moving forward.

Looking ahead, Omni plans to expand its regional export footprint into markets such as Trinidad and Barbados while increasing exports from 15 per cent to 20 per cent of total sales within two years. The company is also focused on introducing specialised products aimed at diversifying its revenue base. Kumst expressed optimism about Omni’s future: “The steps we’ve taken today lay the foundation for long-term success. We are not just weathering economic shifts; we are leveraging them to refine our strategy and seize new opportunities.”