SAUCE and seasonings company Spur Tree Spices, at the end of its first quarter ended March, reported increased revenues of approximately $384 million — 62 per cent above the corresponding quarter of last year.

Profits, though down some 6 per cent, totalled $47.8 million.

Set on becoming a fully fledged food company the Junior Market-listed business — which continues to seek out opportunities in new markets as it develops new product lines — also said that its first-quarter performance will set the tone for a successful year ahead.

“In addition to revenue from our acquisition investments we continue to build out our footprint into new territories and establish partnerships in key markets. Another key element of our core strategy continues to be increasing our footprint by creating new customer segments and to capitalise on new and emerging opportunities in both the local and international markets, which has also contributed to the additional revenue for the period,” the directors said in notes accompanying the latest financial statements posted with the Jamaica Stock Exchange.

The company, as it continues to navigate a challenging environment, said that while there has been a gradual reduction in freight rates globally its business will continue to prioritise the sourcing of at least 90 per cent of raw materials from local suppliers.

“Due to the high inflationary climate there has been an increase in costs of up to 30 per cent of some local raw materials. As such, we continue to strategise with our local partners to find ways to gain efficiencies and reduce costs over the medium to long term while leveraging economies of scale gained from business growth. We also continue to build capacity to store and process raw materials to be able to take advantage of any market excesses,” the report further stated.

Expenses, which almost doubled to total $66.7 million, the directors said were largely driven by the consolidation of its newly acquired stake in the Linstead Market/CANCO subsidiary along with further investments in leased space and staff expenditure to support its ongoing growth strategy.

Moving shareholders’ equity to $927 million and assets to $1.5 billion up to the end of the three-month period, the directors, banking on some strategic investments made, said the company is poised to deliver a successful year as it unlocks added growth.

“The first quarter provides a good indication of the foundation laid which we will build on for solid growth and value creation for our valued shareholders,” the directors represented by Chairman Metry Seaga and CEO Albert Bailey said.