CPJ’s wines on display. The company enjoys a corporate tax holiday due to its listing on the Jamaica Stock Exchange junior market.
CARIBBEAN Producers Jamaica (CPJ) Limited posted profits of US$2.6 million ($223 million) for the nine-month period ended March 31.
The earnings were US$728,000 more than the same period last year, much of that being attributable to the company listing on the Junior Market of the Jamaica Stock Exchange, according to its nine-month interim report.
CPJ will pay no taxes for five years as a result of its listing last July and 50 per cent for the next five years. It paid US$651 thousand in taxes for the corresponding nine months in 2011.
The integrated food service distributor said its third quarter was especially strong, thanks to the winter tourist season which generally brings more visitors and greater demand for their products.
That quarter also saw a three per cent reduction in selling and administrative expenses to US$2.9 million “in spite of increases in fuel and electricity of 36 percent”, the report said.
Depreciation costs the company US$254,000 while finance costs took another US$368,000 from its purse.
CPJ is focused on “improving overall efficiencies, updated service delivery levels and the introduction of new products.”
Despite what the report calls “uncertainty of the times”, it opened a meat processing plant in February. CPJ intends to produce pork cuts, bacon and hamburger patties for the hospitality sector. Additionally, it will target the local retail market with beef, pork and smoked meats come next quarter.
A 10,000-square feet warehouse, to store operating supplies for all its plants and house offices for its technical services team and staff welfare centre, is being built in Montego Freeport to support CPJ’s processing plant. Construction on the new facility will end soon.
It’s better known for supplying international wines and spirits, which has become its main area of growth.
CPJ is located in Montego Bay. Its cold storage facility, at 30,000 square feet, is the largest in Jamaica. The company is also the only distributor on the north coast with a bonded warehouse, giving it the flexibility to hold wines and spirits duty-free.
PAUL ALLEN Business Reporter