Revenues climbed 3% to total $2.27 billion

Jamaican Teas has managed to reverse its 2020 losses to post healthy net profit of $586.18 million for its 2021 financial year.

The strong financial performance of 2021 shows the extent of how well the manufacturing company has rebounded from the negative effects of the pandemic having reversed the 2020 net loss of $69.72 million. Pre-tax profit for the year ended September 30, 2021 amounted to $741.05 million relative to the pre-tax loss of $135.44 million booked the previous year.

For the fourth quarter, pre-tax profit amounted to $79.34 million, down from the $177.34 million posted in 2020. For the year ended September 2021, net profit attributable to shareholders rose to $392.94 million, up from the $222.40 million booked in 2020.

Jamaican Teas saw a three per cent rise in revenues amounting to $2.27 billion, up from $2.20 billion in 2020. For the September quarter, revenues amounted to $520.36 million, down from $782.88 million in 2020.

Management comments on positive performance

Referring to 2021 performance, Jamaican Teas management explained that “in response to the continued uncertainties, management continues to adopt several measures specifically around financial risk management. Some of these measures include re-organising the investment segment to reduce investment in industries assessed as being sensitive to the pandemic and diversifying the investment portfolio to invest in listed equities outside of Jamaica, across thriving industries”. 

Cost of sales increased by seven per cent to $1.72 billion, up from $1.61 billion in 2020. There was a marked improvement in other income of $163.48 million versus $78.54 million in the prior year.

Administrative expenses increased by five per cent to $245.41 million relative to $228.16 million for 2020. Sales and Marketing costs contracted by 29 per cent to $36.82 million, down from the $51.73 million posted in 2020.

For the last quarter administrative expenses and sales & marketing costs closed at $57.91 million, down from $66.79 million in 2020 and $9.71 million, down from the 2020 booking of $9.91 million respectively. Finance cost for the year amounted to $37.71 million relative to $31.75 million reported in 2020, while finance costs for the quarter closed $11.79 million, up from $7.78 million in 2020.

As at September 30, 2021, the company’s total assets amounted to $4.08 billion, a 16 per cent increase when compared to the $3.52 billion reported as at September 2020. This increase was attributable to a 34 per cent growth in ‘Investment’ from $1.60 billion in 2020 to $2.14 billion for the period under review.