Profit at Jamaican Teas for the 2015 fiscal year to September rose 60 percent to $81 Million from a 17 percent increase in revenues of $1.3 billion and from a 32 percent rise in exports to $370 Million.
Export sales exceeded domestic sales from the manufacturing arm that ended at $363 million for a 6 percent increase for the year.
In the final quarter, net profit increased by 520 percent to $12 million from a loss in 2014 and $15.6 million after other comprehensive income. For the full year total comprehensive income amounted to $97 million compared to $46 million in 2014. The company incurred some one-off costs that are not likely to recur in 2016 and should help in contributing to increased profit.
The group operates two supermarkets, one in Kingston and one in Savanna-la-Mar with sales of $520 million for the year compared to $491 Million in 2014. The jointly owned supermarket in Montego have been challenging in a tight but competitive Montego Bay economy.
June marks the end of the tax free status of Jamaican Teas. Accordingly, the company became subject to income tax, effectively at 12.5 percent commencing in the fourth quarter of the 2015 financial year and continuing for another 4 years and nine months.
The company said they completed construction of 29 two bedroom units along with infrastructure work during the fiscal year, with all units being sold, with the majority of sales to be booked in the new fiscal year. The company expects that the net proceeds of sales will be used to pay down loans, pay a dividend to shareholders and finance Phase II of the development of which there are several commitments for.
Outlook|The company is expecting another year of good performance in 2016, in line with this, the 2016 financial year has started off on a favourable note with strong interest shown in units in phase 2 of real estate development. The expected completion of the sale of all units in phase 1 are of real estate development, good export sale orders so far. The electioneering ahead of the general elections could bring increased consumer spending and positive development in the tourism sector with the expectation of a strong tourist arrivals in 2016 could see the company benefitting. Jamaican Teas also holds a portfolio of equities that has increased in value with the 2015 results shows with an increased value of $16 million, that amount would have grown with the growth in the Jamaican Stock market since the year end.
The company is primarily involved in the processing of local teas and packaging along with imported teas and for the Jamaican and overseas markets, operates supermarkets, and the rental and development of realty. The company’s shares are listed on the Jamaica Stock Exchange, last traded at $3.85.