Berger Paints, Jamaica’s major paint manufacturer concluded their 2026 annual general meeting this past Friday, with a new chairman at the helm. Management informed shareholders of the demolition of fourth quarter profits due to the damage caused by Hurricane Melissa. According the General Manager Dwaine Williams the company was on target to deliver one of the best results with the hurricane snatching it away.
Berger Paints directors at the recently held AGM right to left are the chairman Ian Mitchell, Dwaine Williams General Manager, former chairman, Christian Llanos, Chamika Cuffy, Financial Controller, Michael Fennel , OJ, Nicholas Maclean. In attendance but not at the head table are Milton Samuda and Jacqueline Sharp.
He went on to point out that the improved 2025 first quarter results, suggesting that the new-year is on track for a surge in profits. According to Williams, the first quarter has some demand as a result of the rebuilding out west, but suggests that increased demand is expected as the rebuilding matures. The rebuilding is seeing demand for steel, cement and other construction materials, but after that, paints will be demanded he stated.
The directors in reporting on the first quarter performance stated,” demand strengthened progressively through the quarter as rebuilding activity accelerated. The Company met that demand with high service levels and dependable supply.”
The new year has started well for the company with a 180 percent jump in the March quarter, at Berger Paints to $31 million, from just $11 million after corporate taxes in first quarter 2025. Profit before tax came in at $38 million, up 123 percent from $17 million in the prior year. The profit was partially fueled by a sharp jump in other income to $24 million, from a gain of just $7 million, in 2025, partially reflecting a $20 million swing from a foreign exchange loss of $13 million in 2025 to a gain of $7 million in the current period. Taxation rose 19 percent to $7 million form $6 million in 2025.
The 2026 outcome on the surface appears impressive, but falls well short of the profit of $48 million in 2024. For the first quarter this year, revenues climbed 16 percent to $890 million, from $769 million in first quarter of 2025, just slightly less than the solid 20 percent growth in the third quarter last year over the 2024 gross inflows.
Shareholders in attendance at Berger Paints 2026 Annual General Meeting held on Friday, May 15 at the Courtyard- Marriott Hotel
At the nine-month stage in 2025, net profit amounted to $18 million on revenues of $2.4 billion, compared to $9 million on revenues of $2.3 billion in the same period of 2024. Hurricane Melissa struck Jamaica at the end of October last year, the start of peak painting season, which traditionally accounts for around 90 percent of Berger’s annual profits, suggesting profit in the region of $200 million for the full year, but for the devastating effect on the fourth quarter performance.
Raw materials cost climbed 11 percent to $423 million for the quarter from: $381 million in 2025. Gross margin before manufacturing costs, climbed to 54 percent from 50 percent, in the 2025 first quarter and reflects gains from ongoing capita investments. in this regard the company stated that they plan to spend $100 million in the current year on capital expenediture.. Manufacturing expenses increased by 31 percent to $17 million from $13 million in 2025. Employee expense rose 11 percent to $185 million from $166 million in 2025. Other operating expenses rose 31 percent to $226 million from $172 million in the prior year. Depreciation amounted to $26 million, up 7 percent from $24 million.
First quarter2026 earnings per share came in at 14 cents, up from 5 cents in 2025 first quarter. IC Insider.com projects the full year’s earnings at $1.35 on the assumption there will no major disruption to business during the year. The stock closed at $5.35 on May 15, 2026, with a P/E ratio of just 4, based on the current years projected earnings and 214.3 million shares outstanding. Net asset value per share is $5.13, just below the last traded stock price.
The operations generated was $63 million in Cash flow during the quarter with movements in working capital resulting in a net outflow of $69 million and ending with cash on hand amounting to $200 million and reflecting an improvement over $165 million at the end of March 2025.
Inventories grew 29 percent to $920 million, but was lower than the position at the end of the 2025 at $1.23 billion. Receivables declined 17 percent to $741 million from $891 million at the end of March 2025. Current liabilities ended the period at $1.25 billion slightly up on the $1.19 billion at the end of March 2025.
Shareholders’ equity stood at $1.10 billion up from $1.18 billion year ago.