Jamaica Producers Group reports significant lift in profit

Jamaica Producers Group Limited (JPG) experienced a sharp (+67%) increase in net profit attributable to shareholders for the six months ending June 30, 2018.  The company’s performance was boosted by a 34% increase in revenues from its Food and Drink segment which benefitted from an improvement in its European juice business as well as its tropical food snack business. Meanwhile, the significant capital investment in the Logistics & Infrastructure division resulted in a 30% increase in profit before finance cost and taxes to $1.3Bn. 

Looking ahead, the Group’s management foresees that the Logistics and Infrastructure division will continue to benefit from capital investment and business development initiatives geared towards advancing Kingston Wharves as a leading regional multipurpose and multi-user terminal and a market-leading logistics service provider. The Food and Drink division is also undergoing structured continuous improvement initiatives that include new production lines, product and packaging innovation and improved sales and marketing activities 

JPG currently trades at a $17.30 per share, representing an appreciation of 3.5% year-to-date.  At its current price, JPG has a P/E of 23.52x which is above the conglomerate sector average of 16.36x.