BERGER Paints Jamaica Limited (BPJL) has staged a remarkable financial turnaround, reporting a net profit of $105.7 million in 2024 after recording a $218.4-million loss the previous year.

The company’s resurgence follows a year of leadership changes, including the resignation of Chairman Adam Sabga and Director Andy Mahadeo, who both stepped down effective October 31, 2024.

Under the leadership of new Chairman Christian Llanos the company has intensified its operational efficiencies, strengthened its market position, and restored profitability.

BPJL closed the year with a 4 per cent increase in revenue, reaching $3.49 billion — up from $3.36 billion in 2023. The fourth quarter was particularly strong, with revenue rising 7 per cent to $1.2 billion, supported by strategic cost-cutting and improved operational efficiencies.

According to Llanos, a key driver of BPJL’s recovery was its ability to manage expenses while increasing sales. The company’s gross profit margin surged by 18 per cent in the fourth quarter, climbing to 52 per cent as cost of goods sold (COGS) fell by 4 per cent to $577 million. Operating expenses were also reduced by $61 million year on year, totalling $496 million in Q4.

These efficiency measures helped BPJL swing from a pre-tax loss of $255.8 million in 2023 to profit before tax of $151.8 million in 2024 — a turnaround of over $407 million.

The stellar performance was not limited to its income statement. BPJL’s balance sheet has also strengthened, with shareholders’ equity climbing to $1.17 billion from $1.05 billion a year earlier. The company reduced its liabilities from $1.35 billion in 2023 to $1.28 billion in 2024, signalling improved financial stability. Cash and bank balances increased to $190.6 million, compared to $157.6 million in 2023, underscoring better cash flow management.

Looking ahead, Llanos outlined BPJL’s strategy to build on its recent success.

“We are strengthening our supply chain, expanding product offerings, and leveraging technology to improve efficiency. Our goal is not only to sustain profitability but to drive long-term growth in the Jamaican market and beyond,” he said in the preamble to the company’s just-released results.

The company is also prioritising innovation, with plans to introduce new coatings tailored for climate resilience and high-performance applications. Additionally, BPJL intends to deepen partnerships with local contractors and retailers so as to reinforce its market leadership.

The leadership shake-up at BPJL came as part of a broader transition within its parent company, Ansa Coatings International Limited. With Sabga and Mahadeo’s departure the company has moved to realign its strategic focus, emphasising growth in the local market and improved stakeholder engagement. Llanos noted that the new leadership team is committed to continuity and operational excellence.

“Berger Paints Jamaica has a long-standing reputation for quality, and we are focused on driving innovation and customer satisfaction while ensuring operational efficiencies,” he said.

As BPJL enters 2025, its focus remains on capturing market opportunities in Jamaica’s construction and home improvement sectors. The company is banking on continued demand for renovation and infrastructure projects in order to fuel further growth.

— Karena Bennett