Key points

Revenue fell 16 per cent to $814.07 million, while net profit declined 56 per cent to $60.21 million.

Blue Power is challenging the application of a 40 per cent duty on imported raw materials while restructuring its product portfolio.

Its turnaround plan includes new home and personal-care products, liquid formats and future development of its Victoria Avenue property.

BLUE POWER Group Limited is turning to new products and property development while challenging duties on imported raw materials after annual revenue fell 16 per cent to $814.07 million.

The soap manufacturer was forced to recalibrate its business after raw materials imported from outside Caricom to produce soap became subject to a 40 per cent duty.

Blue Power said the duty cost it sales in some value-priced bath soap lines amid intense competition from sporadic informal imports. Lower sales were compounded by a narrowing of its gross profit margin to 31.97 per cent from 33.56 per cent. That meant that the company retained less gross profit from each dollar of sales.

“The impact of this change forced the company to re-examine its production processes, review prices, rationalize its product lines and re-set its key customer relationships. We are pleased to have been able to withstand this shock to the business and to trade profitably in line with our medium-term turnaround plan,” stated Chairman Jeffrey Hall in his report on the April 2026 audited financials.

That 40 per cent duty stems from the January 2024 ruling by the Caribbean Court of Justice in favour of DCP Successors Limited. The ruling required the Jamaican trade authorities to apply the maximum common external tariff on extra-regional imports where an alternative producer exists in Caricom which can supply the input. Blue Power already lost duty-free access to Caricom markets in 2021 after certificates of origin (COO) previously issued were recalled. The COO allows companies to export to Caricom without facing additional duties such as the CET.

Hall and General Manager Vishwanauth Tolan told shareholders in November 2025 that the company was reshaping its product pipeline to meet evolving consumer demand. This included the entry to home and personal care categories and liquid format products through expanded manufacturing capacity. Blue Power manufactured more than 20 million bars of soap in 2025.

The company’s revenue composition also shifted during the year as its two largest customers moved from accounting for $853.56 million or 88 per cent of 2025’s total revenue to $498.34 million or 66 per cent of 2026 total revenue in 2026. Exports previously made up 26 per cent of Blue Power’s revenue in April 2019 and now represent less than ten per cent of revenue in April 2026.

Blue Power is challenging aspects of Caricom’s tariff regime, arguing that an exemption should apply where regional raw materials are unavailable in sufficient quantities or fail to meet required quality standards.

“Notwithstanding the steady progress on restructuring the business and its product portfolio, Blue Power continues to clarify and challenge specific aspects of the Caricom regime to ensure that it is fairly applied in the application of duties to the raw materials used by manufacturers,” Hall explained.

He added, “Certain specialised product lines of bath soaps for local, hospitality and export markets will return to growth where Caricom simply applies this established rule on a timely basis.”

Due to lower revenue and a seven per cent increase in administrative and other expenses to $241.64 million, operating profit declined 71 per cent from $108.98 million to $31.65 million. After accounting for the share of profit from its associate Lumber Depot Limited and net finance income, Blue Power’s profit before tax dipped 54 per cent from $164.35 million to $76.34 million. Consolidated net profit decreased 56 per cent to $60.21 million with an earnings per share of $0.11.

Blue Power’s total assets stood at $1.85 billion with $431.72 million related to its Lumber stake, $391.17 million in investments and $254.31 million in cash and cash equivalents. Total liabilities were $100.98 million while equity was $1.75 billion. Blue Power paid a $0.10 dividend totalling $56.50 million in September 2025.

Although the company faced a difficult 2026, it remains determined to retain its positioning on its range of products in the Jamaican market. Blue Power is also focused on developing 3 Victoria Avenue into a multi-use commercial and operational complex in the future to further bolster earnings.

“Our strategic commitment to reliably produce established soap brands for Jamaica’s leading personal care distributors has proved to be a source of resilience for the business. We intend to sustain and combine this strength with an explicit commitment to innovation and new product development in the bath and laundry care markets and we expect this to account for a share of our growth targets for the 2027 financial year,” Hall said of the outlook for 2027.

BPOW’s share price closed Tuesday at $2.98 which left the stock down 27 per cent year-to-date with a market capitalisation of $1.68 billion. Mayberry Jamaican Equities Limited bought 2,174,683 ordinary shares during the year to bring its total to 116.19 million ordinary shares for a stake of 20.56 per cent.

Following the passing of founder Dr Dhiru Tanna, chairman Hall and his wife Dr Swee Chua are now the only referenced connected parties to Antibes Holdings Limited which owns 50.09 per cent of Blue Power’s shares. Hall became a connected party to Antibes during the October 2021 quarter before being appointed chairman in May 2022. Pechon Properties Limited is the ultimate holding company for Antibes Holdings.