KINGSTON, Jamaica—Consolidated Bakeries Jamaica Limited, the company behind the Purity and Miss Birdie brands, is beginning to show signs of recovery, posting improved margins and a return to profit as operational pressures ease.

The gains are coming less from rapid expansion and more from how the business is being run.

Revenue rose modestly during the year to just over $1.6 billion, but the stronger story lies in margins, where tighter cost control and efficiency gains helped lift gross profit and improve overall profitability. Gross margins climbed to roughly 39 per cent, up from about 36.5 per cent a year earlier.

That improvement flowed through to the company’s core operations.

Purity reported operating profit of $23.7 million, reversing a loss of nearly $8 million in 2024, while earnings before interest, tax, depreciation and amortisation (EBITDA) also strengthened significantly.

The company ultimately returned to net profit of $6.5 million, compared with a loss of about $12 million the year before, marking a shift after a period of sustained pressure.

While revenue growth has been relatively modest, the results suggest that the business is becoming more efficient, with improved margins doing much of the heavy lifting.

There are also clearer signs of stabilisation in how the company is generating cash.

Operating cash flow turned positive during the year, a notable improvement from the prior period, allowing Purity to rebuild its cash position and strengthen its day-to-day flexibility.

Alongside these operational gains, the company also moved to ease pressure on its balance sheet.

During the year, Purity drew down $300 million from an existing $600-million facility with Sagicor Bank Jamaica, using the funds to refinance loans previously held with NCB and JMMB. The move extends the company’s repayment profile out to 2035, providing greater cash flow flexibility to support working capital and ongoing investment in operations.

Total borrowings remained relatively unchanged over the period.

At the same time, Purity has been working to improve its product mix, placing greater emphasis on snack items and other higher-value products while managing the constraints of its traditional bread business, where pricing remains highly sensitive. Those efforts are beginning to show, though gradually.

An earlier version of this article incorrectly stated that the $300 million referenced in Consolidated Bakeries Jamaica Limited’s financial statements represented a new loan facility. The company has clarified that the amount reflects a drawdown from an existing $600-million facility arranged in September 2025, which was used to refinance prior loans and extend its debt maturity profile. Total borrowings remain relatively unchanged.