JP Profit Up 24.6% In 2022; To Transfer Core Operations To PanJam

• Jamaica Producer Group Limited (JP) has recorded a 24.6% yoy increase in net profit attributable to shareholders of $2.30Bn for the financial year ending December 31, 2022.
• Revenue for the year was up by 15.9% yoy to $29.00Bn and is largely attributed to increases in revenues from the Food and Drink division (F&D division). The F&D division revenues experienced a 15.6% yoy increase, while revenues from the Logistics and Infrastructure Division (L&I division) increased by 16.3%.
• This was, however, tempered by a 25.2% increase in ‘selling, administration, and other operating expenses’ compared to the $3.45Bn recorded in FY 2021 and was mainly driven by a 23.0% increase in staff costs to $1.79Bn.
• In November 2022, JP entered into an agreement with PanJam Investment Limited that will see JP transferring its core operating businesses to PanJam in exchange for a 34.5% interest in PanJam. The combined strength of the two enterprises operating as one will enhance shareholder returns through further diversification and a stronger platform for organic and acquisition-led growth.
• Together, PanJam and Jamaica Producers will be a true conglomerate with investments in agriculture, financial services, hospitality, logistics, real estate, shipping, specialty food and drink, and tourist attractions located in the Caribbean, Central, and North America, and Europe.
• JP’s stock price has increased by 2.9% since the start of the calendar year. The stock closed Wednesday’s trading session at $22.59 and currently trades at a P/E of 11.0x, above the Main Market Conglomerate Sector Average of 10.6x.

(Sources: JSE & NCBCM Research)