PRICESMART plans to open a new distribution centre in Jamaica later this year, part of a broader investment push that will see the company operating four warehouse clubs on the island by year end.

The Nasdaq-listed company disclosed the plan in its second-quarter 10-Q filing for the December to February period on Wednesday, noting that the in-country facility will streamline its logistics network and support the movement of dry goods across its warehouse clubs. The centre is expected to reduce third-party distribution and freight costs, shorten transit times, and accelerate the company’s sales conversion cycle.

“In addition, we plan to open distribution centres in Colombia and Jamaica during fiscal year 2026 and in the Dominican Republic during fiscal year 2027,” PriceSmart said in its quarterly report.

PriceSmart already operates a third-party logistics facility in Jamaica for dry goods, but the new facility marks its latest investment in the country. The company currently operates two warehouse clubs — in Kingston and Portmore — along with a PriceSmart Fresh Bakery, and is set to open a Montego Bay location this summer and another in Kingston by year end.

PriceSmart is currently enhancing its logistics and distribution network which has seen the company open distribution centres in China during its second quarter. It is also opening these new distribution centres in each of its multi-club markets which will be operated by itself or third-party logistics providers. This move is meant to reduce landed costs and lead times as the company can ship straight from Asia to its various local markets.

PriceSmart completed the opening of its Trinidadian in-country distribution centre during February. This distribution centre was partially funded through a US$29.5-million privately placed bond agreement which is indexed in Jamaican dollars (JMD). PriceSmart’s Trinidad operations received US$70.43 million in debt financing during the company’s fourth quarter.

“Additionally, we believe that one of the quickest and most effective ways to increase sales and profitability is to increase the size and efficiency of our existing warehouse clubs and the number of parking spaces at our high-volume locations,” PriceSmart said, outlining its expansion strategy. The company is already expanding its Portmore warehouse club and increasing parking capacity at the location this year.

PriceSmart beats analyst targets

PriceSmart’s Caribbean segment reported a four per cent increase in second-quarter revenue to US$396.52 million, driven by higher membership income from more platinum accounts. However, operating income fell two per cent to US$23.79 million amid higher operating costs, while net profit rose four per cent to US$19.05 million. Capital expenditure for the segment totalled US$22.84 million during the quarter.

At the group level, second-quarter revenue rose 10 per cent to US$1.50 billion, exceeding analyst estimates by US$20 million. Operating profit climbed 16 per cent to US$75.42 million despite a nine per cent increase in expenses, while adjusted EBITDA rose 15 per cent to US$99.69 million.

Profit before tax increased 11 per cent to US$66.69 million, even as finance costs rose, with net profit up 12 per cent to US$49.09 million. Earnings per share came in at US$1.62, beating expectations by US$0.06.

For the six-month period, consolidated assets grew seven per cent to US$2.44 billion, supported by increases in short-term investments to US$149.71 million and merchandise inventories to US$623.14 million. Total liabilities rose eight per cent to US$1.10 billion due to higher accounts payable and accrued expenses, while equity increased seven per cent to US$1.33 billion.

The company continues to explore expansion into Chile, having signed executory agreements for two potential sites and appointed a country general manager. It is also planning to open its eighth warehouse club in Guatemala, located in Villa Nueva, by spring 2027.

Shares closed Wednesday at US$157.19, giving the company a market capitalisation of US$4.83 billion, after trading as high as US$160.43 intraday. PriceSmart paid a US$0.70 dividend totalling US$21.63 million on February 27 and increased its annual dividend by 11 per cent to US$1.40 per share.

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