JAMAICA Teas (JAMT) further diversified into retail sector through its acquisition of a half stake in a Montego Bay supermarket, bringing to two the number of stores it has under the group.

Yesterday, JAMT announced that it acquired a 50 per cent interest in Bay City Foods Limited, a newly formed company, which is expected to conclude the purchase of a supermarket operated under the SuperPlus banner and is located on Barnett Street.

The notification to the Jamaica Stock Exchange (JSE) said that “the arrangement provides for the purchase of the tangible and intangible assets of the supermarket and the lease of the premises”.

The facility, which will operate as Bay City Supermarket as of next week, is over 30,000 square feet and is located in a prime commercial area in the town.

Jamaica Teas’ first supermarket is located on Chancery Street, off Red Hills Road, and was renovated at a cost of $10 million.

Net profit for Jamaica Teas increased 11 per cent or $2.8 million for the fourth quarter, ended September 30, 2010 to close the period at $25 million.

However, without a $7.2 million tax credit, a consequence of listing on the JSE junior market in July, the company’s profits for the quarter would have declined by more than 10 per cent when compared to the similar period of 2010.

The increase in net profit was driven by a 39 per cent overall increase in revenue led by $46 million in retail sales and rentals which was not a part of the company’s revenue stream in the corresponding period last year and which alone boosted revenue by 50 per cent.

Aside from the supermarket, which it began operating at the end of June, Jamaica Teas already diversified into renting commercial property. Its commercial complex on Birdsucker Lane in Barbican, was completed at a cost of approximately $31 million earlier this year.

Export and domestic sales also increased during the quarter by 17 per cent and 5.6 per cent respectively.

John Mahfood, CEO of Jamaica Teas noted the increased sales of six per cent in the company’s core manufacturing business over the fourth quarter, but the increase was less than would have occurred in previous quarters.

“The weaker performance in the fourth quarter was due to the poor economic climate in our domestic market,” said Mahfood in a statement to shareholders.

Cost of sales for the period was $108.6 million, up 87 per cent or $50.5 million over prior year’s quarter.