Jamaica Producers Group Limited (JP) posted net profits of $57 million for the third quarter ending October 10, 2009, as the local agro-processor continues to benefit from its restructuring last year.

JP’s net profit over the third quarter represents an increase of $571.2 million relative to the comparable period last year, when JP incurred net losses of $514.2 million on revenues of $4.04 billion. Revenues from continuing operations for the period under review were up 34.3 per cent relative to the comparable period last year.

In its company report, JP notes that the improved 2009 third-quarter performance, like its first and second quarter, reflected the positive spin-offs of its decision to sell its burdensome UK subsidiary – Serious Foods – and exit the dying banana export business.

Prior to its decision to sell Serious Foods, JP had produced a string of dismal results as sales were eroding while raw material prices increased. As a result, the company announced that it would no longer be able to sustain Serious Foods, whose losses were putting an enormous amount of pressure on the group’s overall performance.

Also, after seeing its banana operations impacted by a series of hurricanes, JP took the decision to cease exporting bananas. It chose instead to concentrate on banana production for the local market and build up its snacks business, agressively pushing cassava snacks produced under its St Mary brand.

The upshot has been a lean, more efficient JP operation, anchored around the business of fruit processing. The company says it’s now the leading fresh fruit juice producer in the Netherlands and a leader in the supply of tropical snacks in the Caribbean. It also operates a freight consolidation and freight forwarding business linking the UK and the English- speaking Caribbean.

At the end of the third quarter, year-to-date profits for the group were $156.9 million, which represents a turnaround from losses of $1.15 billion incurred during the comparable 40-week period in 2008. Year-to-date revenues from continuing operations were up 114.9 per cent.

JP Europe earned year-to-date pre-tax profits of $150.3 million for the 40-week period on revenues of $3.71 billion. Over the comparative period last year, that division had a pre-tax loss of $1.47 billion. AL Hoogesteger Fresh Specialist BV (Hoogesteger), acquired in July 2008, is now the main contributor to year-to-date revenue and earnings growth in the division.

JP Tropical, the division which engages in agricultural production in Jamaica and Honduras and tropical snack manufacturing in Jamaica and the Dominican Republic, has earned pre-tax profits of $37.3 million year-to-date. The results represent a turnaround of $180.5 million relative to the pre-tax loss of $143.2 million for the comparable period last year. Revenues were up 92.3 per cent.

The Corporate segment, which comprises interest and investment income net of the cost of corporate functions not directly charged to the business units, recorded a profit of $11.8 million for the 40-week period compared to a loss of $26.9 million for the comparable period last year.