AFTER a year of supply chain turmoil and restructuring, Berger Paints finally delivered a strong third-quarter performance, swinging back to profit and posting double-digit revenue growth. But the momentum may be short-lived.

The company is warning that Hurricane Melissa’s unprecedented destruction will meaningfully damage its fourth-quarter results and push recovery well into 2026, possibly reversing the gains made so far this year.

“The catastrophic impact of Hurricane Melissa on Jamaica has significantly affected our customers, communities, and the country as a whole. The scale of devastation to lives, infrastructure, and business operations is unprecedented, and the effects will be far-reaching for some time to come,” Chairman Christian Llanos said in the preamble to the company’s quarterly report.

Berger’s September quarter delivered its strongest signs of stability since the company returned to profit earlier this year. Revenues for the third quarter climbed to $866 million, up 19 per cent from the same period in 2024, supported by stronger market demand and more dependable supply inflows following months of volatility. The company also swung from a $41-million loss last year to a $23-million profit before tax, crediting tighter cost controls and improved manufacturing performance.

Across the nine-month period, revenues rose to $2.4 billion while profit before tax reached $30 million — more than double the $11 million posted last year. Llanos credited the gains to more disciplined operational execution as the company gradually worked through supply chain issues that weighed down last year’s results.

But the uplift in performance is now overshadowed by the impact of Hurricane Melissa, which the company describes as a major setback not only for its business but for the country at large. The chairman also cautioned that the final quarter will be materially weaker than previously expected.

“We anticipate a meaningful negative impact on our performance for the remainder of the financial year, with recovery likely to extend beyond the fourth quarter,” Llanos said.

The company is also still facing cost pressures it flagged in previous quarters. Raw material and manufacturing expenses pushed the cost of goods sold to $1.1 billion, a 10 per cent increase. Inventories have also jumped to $1.4 billion — more than double last year’s level — which could add pressure on cash flow as consumers prioritise basic repairs.

Llanos also noted the toll the hurricane has taken on its employees.

“Our immediate priority remains the welfare and safety of our staff, many of whom have suffered substantial personal and property losses,” he said.

At the same time, he said the company is working closely with retailers, distributors, and affected communities by supporting customers and partners as they begin the difficult process of assessing and rebuilding.

While the company maintains confidence in its long-term strategy, Llanos noted that market demand will be constrained for some time as consumers shift spending away from non-essential purchases.

“Although we remain cautiously optimistic about improving momentum over time, the extraordinary scale of this disaster will present significant challenges in the final quarter and beyond. Notwithstanding these headwinds, we believe that with disciplined execution and strong fundamentals, Berger Paints is positioned to navigate the recovery and sustain long-term success as the country rebuilds,” he said.

— Karena Bennett