CPJ records handsome profit

Caribbean Producers Jamaica Limited (CPJ), integrated food service distributor to the hospitality industry, saw net profit of US$3 million for its financial year ending June 30, 2012, a significant movement over the US$1.1 million it earned the previous year.

The performance was attributed to increased revenues on improvement in key margins, the company said.

For the year gross operating revenues totaled US$67.5 million, an increase of 5.6 per cent over the US$63.9 million recorded for 2011.

"We see to the importance of creating a diversified business model, including broadening the product and service portfolio that is continuously developed to remain relevant to our target markets. This while simultaneously recognising the balance between cost-effectiveness and high quality products," Dr. David Lowe, CPJ's business development manager said in a release.

Lowe said CPJ will be looking to build on the foundation so far with enterprises and initiatives geared towards its primary customer, the hospitality industry.

Just two months ago the company added a new line of chemical cleaning products and other detergents to its portfolio of products under a US$1 million deal with American company Swisher Hygiene that taps into the local hospitality market.

The US$1 million or J$91 million represents an investment by both companies in the installation of chemical-dispensing equipment and infrastructure at CPJ’s base in the Montego Freeport, Montego Bay, St. James.

That contract is expected to generate between US$2 million and US$3 million in revenue within two years of supplying the market.

The company, which was established 18 years ago in 1994, is in the process of preparing to open a 4,300 square feet retail facility at Lady Musgrave Road, St. Andrew.

CPJ last traded at J$2.30 on the Jamaica Stock Exchange.

At the end of June the company had an asset base of US$21.5 million.

business@gleanerjm.com