Jamaican Teas exports sales up 66%

Jamaican Teas CEO, John Mahfood addressing the company’s last AGM in 2017.

Export sales at Jamaican Teas grew a very strong 66 percent for the December quarter while domestic manufacturing sales increased by 15 percent. Overall sales at increased 22 percent to $456 million the quarter.
Revenues from our manufacturing operations grew 40 percent in the period while supermarket sales increased by 9 percent. Profit after tax rose 9 percent to $51 million, reflecting better performance from core operations and resulted in earnings per share of 7.6 cents.
A release accompanying the results by the company, stated that, “importantly, the trend in sales continued into the second quarter and are meeting the Company’s expectations. Our investment portfolio continued to increase in value over the December levels.”
Gross profit margin increased from 23 percent to 24 percent in the quarter over 2016. Other income was down by 59 percent, falling from $17 million to $7 million. The 2016 results benefited from greater contributions from realized investment and foreign exchange gains than in the latest quarter. In this regard realized investment gains during the quarter was $6 million compared with $12 million in the same period a year ago.Marketing and sales cost rose 16 percent to $9.6 million, administrative cost rose 34 percent to $43 million, reflecting added associated with the KIW acquisition, but finance cost fell 51 percent to $4.6 million.
The company said that “with the acquisition of KIW International and the reinvestment of the proceeds of sale from the property formerly owned by the company, quoted investments at the end of the quarter totaled $319 million.” It could have a major impact on profits, if the local stock market continues to record gains for the year.
The financial position improved over 2016 with equity capital of $1.1 billion, net current assets of $549 million and long term loan of $193 million.