Berger Paints Jamaica reboundsWednesday, August 04, 2021
Despite the challenges posed to local manufacturing by the novel coronavirus pandemic, Berger Paints Jamaica Ltd (BPJL) says it has recorded encouraging numbers for the second quarter ended June 30, 2021.
For the quarter under review, BPJL achieved revenue of $665.7 million, a 62 per cent increase over the previous corresponding quarter, which recorded $411.5 million.
Net profit for the quarter was $1.8 million, rebounding from the $42.2-million net loss recorded in the corresponding quarter last year.
Operating expenses for the second quarter totalled $370.1 million or 35.7 per cent above the $272.8 million recorded for the corresponding quarter last year.
The increase in operating expenses, the company said, resulted mainly from execution of planned investments in its Boldly Berger campaign and packaging redesign, investments in further development of human capital, and additional depreciation associated with capital expenditures.
Cost of sales for the quarter totalled $310.5 million, representing an increase of 71 per cent, mainly due to the strong performance in sales volumes, significant supply chain challenges brought on by the ongoing pandemic, the Suez Canal blockage in March this year, and further devaluation of the Jamaican dollar, BPJL stated.
Total assets also increased by $668 million or 39.3 per cent, moving from $1.7 billion to $2.4 billion year-on-year, driven by higher inventories and trade receivables directly linked to increased sales.
Speaking at the company's annual general meeting held last Thursday, General Manager Shashi Mahase indicated that BPJL's performance for the first half of 2021 validates its commitment to building a powerful future through the delivery of its long-term strategies.
This includes driving operational excellence by improving efficiency in all areas of the value chain, fostering a customer-centric culture, and building and improving organisational capabilities to foster innovation.
The company said it remains poised for expansion and diversification opportunities.
— Abbion Robinson
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