AFTER several years of restructuring, consolidation and strategic repositioning, Jamaican Teas Limited delivered a strong profit rebound in its 2025 financial year, even as operating pressures and softer conditions in key export markets continued to weigh on the business.

For the year-ended September 30, 2025 the group reported net profit of about $230 million, reversing a sharp dip recorded in the prior year and bringing earnings broadly back in line with levels last seen in 2023. Revenue rose by nine per cent to $3.47 billion, reflecting steady demand across the group’s manufacturing, retail and export businesses.

The improvement, however, was not without strain.

Operating profit declined significantly to about $313 million during the year, highlighting cost pressures and transition effects that accompanied a series of strategic moves aimed at reshaping the business.

Over the past three years Jamaican Teas has been steadily unwinding a structure built around multiple manufacturing sites and a sizeable real estate footprint, replacing it with a leaner, more export-focused operation.

A key milestone in that process came in March 2024 when the company agreed to sell its Bell Road tea factory and consolidate tea packing operations at its Temple Hall facility in St Andrew. The relocation, completed later that year, was intended to improve efficiency, reduce duplication, and free up capital.

That reset has materially improved liquidity. By the end of the financial year Jamaican Teas held $449 million in cash and short-term deposits, while debt levels declined. Management said this left the group, “well-positioned to meet its obligations and fund future opportunities internally”.

At the same time, Jamaican Teas has been pushing harder into regional export markets.

Sales in the Caribbean have expanded steadily — supported by new distributors and deeper market penetration — and now account for a growing share of revenue. In contrast, conditions in the United States — historically one of the company’s most important markets, particularly among Diaspora consumers — became more challenging during the year.

Management has previously pointed to a combination of higher tariffs, tighter immigration enforcement affecting foot traffic in Diaspora communities, and pressure on household budgets, as factors weighing on US sales.

“That is a lot of money; that is like 1,000 dollars a month per person. And when you lose that, you lose the ability to buy as much,” Mahfood said earlier this year in regards to the recent suspension of Supplemental Nutrition Assistance Program (SNAP) payments, commonly known as food stamps, due to a partial US Government shutdown.

While those headwinds did not derail overall revenue growth in 2025, they contributed to a more uneven operating environment and reinforced the need for diversification beyond a single export market.

The company’s financials reflect that shift. While Jamaican Teas continues to generate income from manufacturing and retail operations, a larger share of profits is now being supported by investments and asset values. Investment securities remain a significant component of the balance sheet, and auditors flagged their valuation as a key area of judgement in the latest accounts.

Real estate, once a growth avenue, is now playing a different role. Directors said the group has been, “actively rationalising non-core assets”, with property increasingly viewed as a source of liquidity and balance sheet support rather than expansion.

Overall, the 2025 results show profits back on track, even as operating performance indicates the company is still working through its reset.