Mailpac open to more acquisitions
Published:Friday | November 15, 2024 | 12:10 AM
With its revenue and profits up in 2024, so far, online shopping and logistics company Mailpac Group Limited says it is improving its customer service and sprucing up its locations while remaining open to acquisitions, both in Jamaica and foreign markets.
Executive Chairman Khary Robinson described the acquisition of rival MyCart Express as a pivotal moment for the company, promising to deliver substantial benefits to positioning it for continued success.
“We’re always looking for opportunities organically to grow our business, whether that is new business lines, whether that is expanding into new locations. We’re also always evaluating opportunities to acquire platforms or new business lines. I can’t say whether or not an impending acquisition is in the works, but what I can say is that we are committed to growing the business both organically and inorganically,” Robinson said, in response to questions about the direction of the company at Mailpac’s annual general meeting on Wednesday.
The acquisition of MyCart Express Limited, a freight forwarding service with 13 branches across Jamaica, said to be the largest player in that segment, was wrapped up on April 1. Under the deal, the owners of MyCart will be issued with $137.19 million worth of Mailpac Group shares, contingent on the net earnings of MyCart over the span of a year ending March 2025. In turn, Mailpac gets a company with assets of $51.5 million.
Robinson said six new MyCart locations were added, focusing on underserved geographic areas.
“This acquisition not only accelerates our penetration into the budget-conscious market, but also fortifies our position in the e-commerce landscape, paving the way for sustained growth and success,” he said.
Over nine months ending September, the company’s revenue grew 43 per cent to $1.72 billion, partly due to the addition of MyCart to the group in March. However, while Mailpac’s quarterly profit for July-September nearly doubled, its nine-month earnings were lower than a year ago, having shrunk from $203 million to $182 million due to a 67 per cent spike in operating costs to $575 million, plus other expenses.
Robinson said Mailpac was undertaking a comprehensive redesign and modernisation of all its stores, and overhauling its customer relations department. The company was “integrating advanced customer management tools and streamlining workflows to ensure quicker response times and more proactive service delivery,” he said.
Mailpac is also exploring a collaboration with Express Fitness, the largest fitness club operator in the region, aimed at “providing customers with even more seamless access to our offerings”.
Both companies are members of Robinson’s investment holding firm, Norbrook Equity Partners, of which he is also executive chairman.