JAMAICA Producers Group (JP) after-tax profit jumped 126 per cent to $135.3 million for its second quarter 2010 over the comparable period 2009, as the local agro-processor benefitted from the sale of investments.

Also, on August 12 the group approved a dividend of at least 15 per cent of its after tax profits.

For the review quarter, however, the group’s profit and loss benefitted from $80.6 million in income from the disposal of fixed assets and investments during the review period compared with $6.2 million in the same quarter of 2009. That item propped up the group’s gross profit and revenues which declined 2.5 and 1.0 per cent respectively.

Over six months, Charlie Johnston in the chairman’s statement accompanying the financials focussed on JP’s operational improvements rather than the sale of investments as the main growth driver. He noted that these “operational improvements” were sufficient to overcome the economic challenges in Europe, the group’s primary market. In particular, since the beginning of this year, he said that the euro depreciated 15 per cent relative to the Jamaican dollar.

“This has adversely impacted the Jamaican dollar equivalent of the revenues and profits that we earn from our European operations. Sales in Jamaica were also affected by the reduced economic activity in downtown Kingston during and after the state of emergency,” he stated.

JP operates three divisions including its JP Europe, JP Tropical and Corporate which earned pre-tax profit of $134.9 million $37.8 million and $83.3 million respectively. The profits of each division are up 43 per cent, 65 per cent and 1010 per cent (10 times) relative to the corresponding 2009 six-months.

Said Johnston on JP Tropical Division results: “We were pleased to have achieved export growth and to have benefitted from our domestic marketing campaigns. This has offset the impact of reduced sales in the Kingston area during the limited state of emergency.”

The JP Europe division comprises fresh juice operations located in the Netherlands—representing the major share of the division’s business—and its UK-based logistics services.

JP Tropical, the division engages in agricultural production in Jamaica and Honduras and tropical snack manufacturing in Jamaica and the Dominican Republic. The Corporate segment comprises interest and investment income net of the cost of corporate functions not directly charged to the business units.