Furniture maker JFP Limited has booked a $348.4 million gain in its second-quarter results following the sale of lands adjoining its factory and head office on Spanish Town Road in Kingston.

The deal, completed in May, delivered a rare bright spot for the company, which has been struggling with weaker revenues and rising expenses.

For the quarter ending June 2025, sales of JFP fell 23 per cent to $108.7 million, down from $140.4 million a year earlier, as delays in project completions and a reduction in contract values weighed on performance. Coupled with a 27 per cent increase in selling and administrative expenses to $60.1 million, JFP slipped into an operating loss of $13.1 million.

Still, the property deal turned the bottom line around.

Comprehensive income swung sharply into positive territory, with the gain boosting net profit to $348.4 million for the quarter and lifting shareholders’ equity to $373.7 million, more than double the $143 million recorded a year earlier.

JFP’s quarterly financial result showed that the proceeds were reinvested into investment holdings, which jumped to $249.4 million from just $7.3 million, while property, plant, and equipment dropped by nearly a third.

The property disposal is only one part of JFP’s broader reset. In recent months, the company has been working with external consultants to re-examine its business model and chart a path back to profitability. That process has already brought changes on the factory floor, where new equipment is being deployed to improve production quality and reduce waste.

At the same time, JFP has been leaning into digital tools to sharpen efficiency. The switch from older design software to SolidWorks has given its designers more precision and speed, while digital storage systems are helping staff manage projects with less reliance on paper and manual processes. Management has also spoken of using AI-assisted tools in back-office functions to free up time and improve accuracy.

Meanwhile, management sought to reassure shareholders that the recent property disposal will have no impact on its core manufacturing operations but is central to its turnaround efforts. The company says the value unlocked from the sale will be channelled into strategic initiatives and other investable opportunities aimed at strengthening long-term performance.

For the half-year, JFP reported revenues of $220.9 million, down 26 per cent year-on-year, with an operating loss of $12.7 million compared to a net profit of $9.6 million for the same period in 2024.

— Karena Bennett