Jamaican Teas Limited (JAMT) is taking a cautious approach to the potential listing of its subsidiary Caribbean Dreams Foods Limited (CDFL) as the board continues to evaluate market conditions.

“We’ve not shelved the plan. We need to be responsible to our existing shareholders and do whatever is necessary to maximise or optimise the returns to our shareholders, and timing is part of that,” said JAMT Chairman John Jackson at the company’s annual general meeting (AGM) that was held on Thursday at Jamaica Pegasus hotel.

The listed company sold its manufacturing business to CDFL in January 2024 as part of its plans to list a portion of the subsidiary on the Jamaica Stock Exchange (JSE). However, that planned listing has effectively been paused as the board decides on the best route to list CDFL.

JAMT listed on the Junior Market of the JSE in July 2010 which gave it access to new funding to expand and grow the manufacturing business. JAMT subsequently listed QWI Investments Limited in September 2019 where the subsidiary raised a gross amount of $1.19 billion which went to expand its investment portfolio. Both JAMT and QWI’s initial public offerings (IPOs) were oversubscribed.

However, the company’s board, which is led by Jackson, a chartered accountant and financial analyst, is now deciding on how and when to list the subsidiary. In 2022, the stock market had six new listings which were all Junior Market companies. Since then, there has been one to two companies listing on the market each year with all other public offerings being additional equity raises by listed companies or public bond issuances.

“There are some people who suggest that we should take the WIPT [West Indies Petroleum Terminal Limited] approach and list by invitation and raise funds afterwards,” Jackson stated on suggestions proffered to the company.

A listing by introduction is a process whereby a company lists its shares without the firm or existing shareholders raising new capital. West Indies Petroleum Terminal Limited listed in December 2025 via this method and saw its stock price rally from $0.50 to a peak closing price of $12.27, giving it a market capitalisation of $137.18 billion which briefly surpassed NCB Financial Group Limited (NCBFG).

While this is an avenue for a company to be listed, a high market capitalisation doesn’t necessarily indicate value that other investors would pay to own a stake in the entity.

When a shareholder asked about a dividend in specie and then listing the company, Jackson noted, “We’ve had discussions briefly on it recently, but collectively, we’d like to see the market at a level when you come to the market, there is no question of failure or success and you can get a reasonable price for your stock.”

A dividend in specie was done by Mayberry Investments Limited in February 2018 where existing shareholders received a piece of the company’s subsidiary Mayberry Jamaican Equities Limited. As a result, existing shareholders owned 10 per cent of the company before its July 2018 IPO.

While CDFL continues to grow through diversification into new markets and a larger production space, JAMT’s board appears to be focused on listing the subsidiary. Although it’s not known if the company would list on the Main or Junior Market, the Junior Market now has a $750 million share capital limit along with a 10-year tax remission. That would give CDFL a runway to accelerate its growth momentum.

“The IPO market is an individualistic market to many respect, and if individuals are not strongly gravitated towards your emerging companies, you run the risk of not getting the best returns you can get,” the chairman stated.

Focus on new product & markets

CDFL is currently placing greater emphasis on growing its product portfolio with the company launching three new tea products in its first quarter ending December 31. This is being supported by entering new markets with the company receiving its first orders from Curaçao and Belize with plans to export to Mexico, the Dominican Republic and Ghana.

“Now, we’re buying from China, Vietnam, Sri Lanka, Egypt and we’re going to those places because we can find things at lower cost with the same or better quality. I see us doing more of that and the intention is that will bring better profit results to the company,” said CFO Cameron Burnet on the company’s diversification moves.

That move is also being supported by the company’s focus on the Eastern Caribbean where JAMT CEO John Mahfood believes there is greater economic opportunity for growth than Jamaica. While he noted that the Eastern Caribbean and Jamaica had similar population sizes, the economic spending power was four to five times larger than the domestic Jamaican market which supports further sales growth.

JAMT’s export sales grew 22 per cent to $1.6 billion in the September 2025 financial year and represented 64 per cent of the company’s $2.49 billion manufacturing revenue. The Caribbean export sales grew 53 per cent to $884 million with Guyana rising 93 per cent to $188.1 million. The overall manufacturing segment profit for JAMT doubled in 2025 to $276.39 million.

While the company is pushing to grow its exports, the CEO noted that CDFL is facing higher prices for various inputs such as plastic film, with other inputs up by more than 20 per cent overnight. He even noted that shipping costs have doubled year-on-year from US$2-3K to US$6-7K per container.

“Of course, you saw where all the beverage companies are putting up their prices and it’s not just because of the new tax they put on sweets, but it’s also because of the increase in the price of the plastic bottles. We see that happening and have to adjust our prices quickly to make sure that the margins don’t decline,” Mahfood noted.

JAMT Director Dr Damien King added, “We’re not viewing it as an aberration and things are going to go back to what you might call normal. I think our company is better positioned to better positioned to deal with the new global environment than any of our competitors.”

JAMT is now a holding company which owns a retail supermarket, a manufacturing business, a real estate business and a tea manufacturing company. The company’s real estate subsidiary is finalising the sale of the remaining five units at the Belvedere, Red Hills and expects to invest those funds back into CDFL’s equipment. JAMT as a standalone entity held $360.39 million in cash and cash equivalents as of September 2025.

JAMT closed Thursday at $2.13, which leaves the stock down eight per cent in 2026 with a market capitalisation of $4.64 billion. The company’s board will consider a dividend payment at its meeting on May 11. It is also seeking to add two additional directors to its company board and new directors to its subsidiary boards.

JAMT’s second quarter report is pending, but its subsidiary QWI reported a net loss of $50.96 million compared to the $130.71 million incurred in 2024. The net loss was due to higher unrealised losses in the Jamaican stock market. JAMT and its subsidiary KIW International Limited collectively own 47.8623 per cent of QWI.

JACKSON…We’ve not shelved the plan.