WOODCATS International Limited is pursuing a joint venture in the eastern Caribbean, marking what could become the newly listed company’s first move outside Jamaica as it begins testing the regional ambitions laid out ahead of its Junior Market debut.

General Manager Peter Douglas confirmed that the pallet manufacturer is exploring an opportunity in the eastern Caribbean, but said the company was not yet ready to disclose the country, prospective partner, or the scale of the deal.

“It’s still early days. We don’t have an agreement yet so I don’t wish to disclose any more information on it at this time,” Douglas told the Jamaica Observer.

Pressed further, he said the discussions involve a joint venture and would remain within Woodcats’s core business, suggesting that the company is looking first to take its existing pallet and wood products model into a nearby market before moving into more aggressive diversification.

The disclosure gives clearer shape to the regional expansion plan outlined in Woodcats’ prospectus in which the company said it wanted to enter at least two new Caricom markets by 2026 and generate 20 per cent of total sales from exports by 2028. It also set a target of becoming a recognised regional hub for sustainable pallet and wood solutions by 2027, supported by at least five regional corporate contracts.

For Woodcats, the eastern Caribbean move is about more than expanding overseas — it will test whether the company can successfully export the business model that has made it an important supplier to Jamaica’s manufacturing and logistics sectors.

The company, which listed on the Junior Market of the Jamaica Stock Exchange on March 17, entered the public market with a promise to use fresh capital to widen its product base, modernise operations, and pursue regional growth. Its IPO was oversubscribed by 22.48 per cent and brought in 8,073 new shareholders while the company received $364.34 million in net proceeds.

That capital has already strengthened the balance sheet. At the end of March the manufacturer of wooden pallets, crates, shipping boxes, furniture and lobster traps reported total assets of $1.29 billion, up 44.52 per cent year on year, while shareholders’ equity rose 82.94 per cent to $1.02 billion. Cash climbed to $295.02 million, largely reflecting IPO proceeds, giving the company more room to fund expansion and absorb the early costs that usually come with entering a new market.

The stronger balance sheet, however, comes at a time when the company’s earnings are still digesting weaker demand at home. For the first quarter ended March 31, revenue fell 5.27 per cent to $241.88 million as demand from manufacturers and other major customers softened because of the lingering impact of Hurricane Melissa, other climatic factors, and seasonality. Management said the first two months of the quarter came in below projections, although demand began to normalise in March.

Despite the revenue decline, gross profit increased 6.07 per cent to $92.68 million while gross margin improved to 38.32 per cent from 34.22 per cent a year earlier. The company attributed the improvement to cost containment and higher-margin product sales, suggesting that Woodcats is trying to protect profitability even as volumes fluctuate.

Net profit, however, fell 13.72 per cent to $14.30 million, pressured by higher administrative expenses linked to one-off IPO costs and increased finance costs.

In addition to plans to reduce its dependence on the local market, the company is broadening its business beyond traditional pallets. Management said it introduced a new product line during the quarter and is installing machinery for a “waste to revenue” initiative designed to convert by-products from its manufacturing process into saleable goods such as mulch, planters, and other wood-based products.

That strategy is consistent with the prospectus, which projected a medium-term revenue compound annual growth rate of approximately 20 per cent by 2028. The company’s strategic plan includes expanding its certified heat-treatment capacity by 50 per cent within three years, increasing pallet production output by 30 per cent by 2027, launching two pilot lines of composite or hybrid wood-plastic pallets by the end of 2026, and growing ancillary and by-product sales to 20 per cent of total revenue by 2028.

The heat-treatment target is particularly relevant to any regional move. Woodcats already provides certified heat treatment for wooden pallets and crates used in export — a requirement tied to international phytosanitary standards.