KINGSTON, Jamaica — As market risks heighten in the global landscape, Pan Jamaica Group Limited (PJAM) has placed greater emphasis on governance and diversification to weather what is turning out to be an unprecedented year.

“At Pan Jamaica Group we’ve stepped back at this moment in time and taken account of the risks in the environment. This, in some respects, is not an ordinary time, and if you’re going to put your capital with us, we feel it is particularly important that we acknowledge where we see risks right now,” said Jeffrey Hall, PJAM CEO and vice-chairman, on Thursday.

Hall’s comments came against the backdrop of a first quarter in which consolidated revenue grew 14 per cent to $11.13 billion, but reduced bottom line earnings. That was manifested by increased geopolitical, environmental, and financial market risks across the globe which translated to a 56 per cent cut in consolidated net profit from $2.11 billion to $924.47 million for the period ending March 31. The net profit attributable to shareholders declined 71 per cent to $487.26 million.

The ongoing USA-Iran saga has pushed up fuel prices and stoked higher inflation, creating additional cost pressures on PJAM’s various operating subsidiaries in the Americas and Europe.

PJAM also had $120 million in higher operating costs in Q1 as it rebuilds its banana and plantain farms, which had a near 100 per cent loss from Hurricane Melissa. Apart from the hurricanes in the Americas, Hall pointed out that PJAM had a $150-million impact from two North Atlantic storms which affected its logistics business that has five refrigerated vessels.

“A storm hit the vessel and containers aboard, stored on deck, toppled over on the side of vessel into the water,” Hall added as he pointed to the delay for the vessel to meet other timelines.

Apart from those factors, the company had a $200-million foreign exchange loss as the Jamaican dollar (JMD) appreciated against the United States dollar (USD) during the quarter. This stemmed from the conglomerate’s long foreign exchange (FX) position, which includes its 43 per cent controlled subsidiary Kingston Wharves Limited (KW).

While Hall notes that the company is working to reduce its $5.5 billion in non-core assets, he noted that the conglomerate had a $249.57 million unrealised loss on its listed securities, mainly in Jamaica. This contrasts with the $16.71 million unrealised gain in Q1 2024.

“My relative position was on governance and diversification as tools to manage risk, including holding cash balances. Certainly, we don’t see ourselves stepping back. We just need to be careful,” the PJAM CEO explained to shareholders.

Hall added, “We believe that our business is organised very well to be resilient in the face of these challenges.”

PJAM is also pushing on growing its juice business in Europe where they now own four companies in Spain, Netherlands, Belgium, and Denmark. PJAM acquired a 64.1 per cent stake in Frankly Juice A/S for $410 million in October 2025 to strengthen its position in the Nordic market.

“We’re even selling juice more than ever before into Eastern Europe right now. We’re expanding in Czech Republic, Romania as we speak, notwithstanding risk,” Hall said on the outlook of the specialty foods division.

In the global services division, Kingston Wharves is currently expanding its business via acquisitions of freight forwarding and logistics businesses while looking to expand in Western Jamaica. In the property and infrastructure division, subsidiary Baywest Development Limited received approvals to construct a resort development at Freeport, Montego Bay, with Chairman Stephen Facey saying they hope to begin construction next year. Also, Capital Infrastructure Group Limited (CIG) is set to benefit next year when Rio Cobre Water Limited completes construction of the 5-million gallon per day water treatment plant .

PJAM is set to support the upcoming debt, and equity raises for the Sagicor Group Caribbean Limited (SGC) transaction set to take place later this year. Sagicor Group Jamaica Limited (SJ) and Sagicor Life Inc are set to become subsidiaries of SGC.

“In fact, in moments of volatility and disruption is when we quite often see opportunity that can be transformational. We have made big moves in various times and crisis,” Hall opined on the opportunities in 2026.

PJAM’s total assets declined one per cent during the quarter, with $39.72 billion in associates and joint ventures along with $8.79 billion in cash and deposits. Total liabilities declined three per cent to $37.06 billion with $23.68 billion in debt. Consolidated equity grew to $114.62 billion with $85.61 billion attributable to shareholders.

PJAM’s share price closed Thursday at $45.03, which leaves the stock down 12 per cent in 2026 with a market capitalisation of $73.29 billion. PJAM will pay a $0.175 dividend totalling $284.85 million on June 25 to shareholders on record as of May 29.

PJAM’s Chief Operating Officer (COO) Philip Armstrong is set to conclude his executive role on June 30 as he becomes the lead independent director on July 1. Armstrong joined PJAM in September 2022 as chief strategy officer and oversaw the amalgamation of PJAM and Jamaica Producers Group Limited (JP).

“As the group gets more complex, the role of governance in a large, complex, multi-sector, multi-country business is extremely important. What Phillip has agreed to do is put in place and actually roll out the development of a tougher governance structure for each of the businesses,” Hall closed.