SPUR Tree Spices Jamaica Limited (STSJL) has delivered the strongest quarter in its history, powered by a restored ackee supply chain, disciplined cost management, and a deliberate working-capital strategy that converted record profit into a defensive buffer against Jamaica’s climate risks.

For the three months ended September 30, 2025, Spur Tree posted net profit of $81.4 million, up 160 per cent year-on-year, as revenue surged 51.8 per cent to $638.2 million.

The company described the period as “the strongest quarter the company has ever delivered”.

CEO Albert Bailey credited the performance to balanced execution across all entities and the recovery of its flagship canned products segment, particularly ackee, which had been constrained since Hurricane Beryl in 2024.

“A tremendous amount of work has gone into…enhancing our sourcing and procurement processes,” he said. “When you have all the entities performing at the expected level, this is the kind of results you’d expect.”

The record profit coincided with a drop in cash and cash equivalents, which fell from $118 million at the start of the year to $73 million. CEO Albert Bailey confirmed this was a strategic move, not an operational issue, as the company deliberately built up its inventories.

He explained the build-up served two purposes: first, to hold more finished goods like ackee and non-ackee products to meet rising demand from more efficient production cycles; and second, as a critical buffer against climate shocks. The company significantly increased its raw material holdings to ensure supply chain continuity.

“My early assessment indicates that we should have raw material that would be able to carry us over for at least…three to four months without any disruption,” Bailey said, noting this strategic cushion is already proving its value after Hurricane Melissa.”

A central driver of the record quarter was the return of ackee supply after a year of scarcity. Spur Tree overhauled its sourcing model, expanding procurement beyond the immediate regions around its factories.

“We now expand that sourcing well beyond into other parishes that will have ackee available at different times,” Bailey said. He expects this wider sourcing network to support more consistent year-round availability — though still seasonal, the crop will no longer be a bottleneck.

Alongside the ackee rebound, the company’s core seasonings and sauces segment — which forms the bulk of revenue — returned to growth after a difficult first half characterised by new tariffs, inflation, and lower demand in the US market.

Bailey said Spur Tree intensified its promotions, collaborated more closely with distributors, and opened new channels. “We brought a new distributor on board in Georgia,” he said, part of a wider effort to reduce reliance on the US northeast, which accounts for 55 per cent of the company’s US sales. He also disclosed ongoing negotiations with a “major distributor” in the United States and efforts to strengthen penetration in Canada.

Despite revenue rising more than 50 per cent, Spur Tree kept administrative expenses to a 3 per cent increase — lowering adminstrative costs to 15.3 per cent of revenue, from 22.5 per cent a year earlier. Bailey said this reflected the company’s ongoing push for efficiency. Gross profit climbed 40.9 per cent to $185.2 million, and year-to-date net profit rose 53 per cent to $102 million. Shareholders’ equity strengthened to $1.12 billion, up 13 per cent.

Hurricane Melissa struck western Jamaica in October, affecting some of Spur Tree’s farming partners. Early assessments show that suppliers closer to Manchester were less impacted than those in Westmoreland, Bailey said. Still, he expects no disruptions to production, thanks to the company’s expanded farm footprint and its four-month raw-material buffer.

The company says it will now push to maximise output for the peak holiday quarter and broaden its distribution channels regionally and internationally.

Albert Bailey, CEO of Spur Tree Spices Jamaica Limited, says the company’s record-breaking third quarter reflects stronger sourcing, improved efficiency, and deliberate planning to buffer climate-related disruptions.