Caribbean Producers Jamaica Limited (CPJ) made a near-250 percent turnaround in the first quarter ending September, having turned a US$315,650 loss into a profit of US$463,346.
CEO David Lowe, who was handed the helm of the company 18 months ago, sees the results as a vindication of the ongoing restructuring programme that he has been insistent would pay off for the Montego Bay-based business.
The results continue to build on the company’s full-year results, ending June 2017, when CPJ saw a marginal uptick in profit from US$2.52 million from US$2.59 million.
“The restructuring of the business, which began at the start of my first year as CEO, in July 2016, resulted in a strong profit recovery. The restructuring was part of a business transformation to achieve greater efficiency and growth in the future,” Lowe said on Wednesday.
“This included process re-engineering, realignment of talent, rationalization of non-performing product categories, and outsourcing of non-core functions and greater customer and business engagement. In addition, debt restructuring enabled a process to reduce expensive debt and increase free cash flows,” he said.
CPJ’s short-term liabilities climbed by 21 percent, or US$3.8 million, in the September quarter, which the company attributed to the reclassification of the loan principal on a J$337 million bond due to mature in June 2018.
The reclassification carved US$3 million off the company’s long-term debt. It also cut short-term loans to US$2.5 million, from US$3.75 million.