JP’s revenues jump 16% to $29 billion in 2022
June 19, 2023
Local conglomerate Jamaica Producers Group achieved significant financial success in 2022, according to its recently released annual report.
The company’s consolidated profit reached $4 billion, while profit attributable to shareholders saw a remarkable 25 per cent increase, amounting to $2.3 billion.
JP’s revenues displayed robust growth, rising by 16 per cent from 2021 to reach $29 billion, with both the logistics and infrastructure segment and the food and drink sector contributing equally to this positive trend, as outlined in the annual report.
JP, which recently finalised its amalgamation with Pan Jam to form Pan Jamaica Group Limited, expressed optimism about its prospects.
Chairman Charles Johnston highlighted the collective strength resulting from the merger, emphasizing the potential for enhanced shareholder returns through diversification and a fortified foundation for both organic and acquisition-driven growth.
With a strong focus on logistics and infrastructure, as well as food and drink, JP now possesses a 34.5 per cent shareholding in the newly formed Pan Jamaica Group, which boasts total assets amounting to $115 billion.
During JP’s annual general meeting held on June 15, Group Managing Director and CEO Jeffery Hall provided key insights into the company’s revenue distribution, noting that approximately half of the business’s earnings originated from operations in the Americas and the other half from Europe.
Additionally, he highlighted that JP’s food and drink division accounted for roughly 60 per cent of the total revenue, while the infrastructure and logistics division contributed 40 per cent. Intriguingly, 80 per cent of the revenue from the food and drink segment was generated in Europe, while 86 per cent of the company’s assets were concentrated in the Americas.
Hall underscored JP’s remarkable performance over the past decade, citing a tripling of shareholder equity and quadrupling of group revenue during that period. He further highlighted the company’s tenfold increase in profits over the same timeframe.
Regarding JP’s plans, Hall mentioned the company’s 34.5 per cent stake in Pan Jamaica Group, along with its ownership of 3,500 acres of land in St Mary, making JP the largest landowner in the parish.
Additionally, JP holds $1.5 billion in cash and short-term investments. Hall expressed confidence in the amalgamated entity, stating that Pan Jamaica Group’s diverse portfolio and effective management would provide JP with opportunities to explore commercial ventures within and beyond Jamaica.
Following the amalgamation, Pan Jamaica Group now includes several well-known businesses in the local market, such as Sagicor, Kingston Wharves, Itel BPO, the Rok Hotel, the Courtyard by Marriott (the venue for the AGM), JP Snacks, St Mary’s, and Chukka.
JP, together with its various entities, employs approximately 2,000 individuals, further solidifying its significant presence in the Jamaican economy.
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