CPJ descends into losses as travel dips
Published:Friday | November 22, 2024 | 12:08 AM
The food and beverage supplier, Caribbean Producers Jamaica Limited, CPJ, recorded a net loss of US$80,700 for the September first quarter, reversing a profit of US$1.2 million in the comparable period last year.
Quarterly sales dipped slightly to US$34 million, 0.6 per cent less than a year ago.
“The loss was primarily driven by the downturn in tourist arrivals in the Jamaica market between July and September 2024,” said Chairman Richard Pandohie and CEO Nicholas Hospedales in their report to shareholders.
Travel to Montego Bay, a major tourist destination, declined 11.5 per cent in September, according to the airport data from the operators of the Sangster International Airport.
Additionally, rising operational costs at Caribbean Producers increased by 20 per cent to US$9.3 million. CPJ, which is based in Montego Bay, ramped up staffing and preparations for a planned US$3 million upgrade to its manufacturing plant, scheduled to go live by the end of March 2025. Furthermore, inventory losses at the company’s retail business in St Lucia added to the financial strain.
“Management has identified the gaps, and changes have been made to correct this,” the company said.
Despite the dip in profit, CPJ’s cash grew to US$10 million from US$5.4 million a year earlier.
Caribbean Producers was formerly controlled by co-founders Mark Hart and Tom Tyler but, since July, control has fallen to AS Bryden Group after the Trinidad-based distributor acquired 45 per cent of the shares in CPJ. Pandohie is also CEO of Bryden Group and Seprod.