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Caribbean Producers Jamaica Limited, CPJ, one of the largest suppliers of food and beverages to the hotel trade, surpassed US$150 million in annual revenue, just ahead of its takeover by AS Bryden, a subsidiary of the Seprod Group, and transition to new management.
The financials for year ending June 2024 were signed off by new Chairman Richard Pandohie and new CEO Nicholas Hospedales, both of which took up their positions at CPJ in early July.
CPJ’s annual sales revenue, which translates to some $23.7 billion in local currency, grew by 5.3 per cent. The flows were split US$103.2 million from the hospitality segment and US$43.4 million from the retail operation.
However, the company’s earnings were flat at US$6.4 million due to rising costs. Still, CPJ remains “optimistic” in its outlook, and its management “more confident than ever” in their ability “to drive sustained growth and profitability”, given the unfolding investments and expected opening of new hotels in Jamaica and elsewhere in the Caribbean.
Challenges include the lingering effects of the US travel advisory and some cancellations due to Hurricane Beryl.
“The recent opening of new hotel properties, as well as upcoming hotel projects like the Princess Hotel in Hanover, will further solidify our position as a key supplier within the hospitality sector,” CPJ stated.
On July 9, Trinidad-based AS Bryden & Sons Holdings Limited acquired approximately 45 per cent of CPJ from shareholders, including founders Tom Tyler and Mark Hart. The deal sees the operations of CPJ being transferred to Bryden.
Bryden now holds 493 million of CPJ’s 1.1 billion shares, with the expectation of acquiring more of the company’s equity in the future. Hart previously told the Financial Gleaner that he sold one-third of his stake in CPJ to Bryden. But Tyler’s level of participation was not ascertained. However, CPJ’s top ownership should be updated in its September quarter filings that are due by mid-November.
The market value of the share acquisition was about at $5.2 billion, or US$33.5 million.
CPJ made new investments of US$4.9 million in fixed assets over the year to expand capacity. CPJ’s cash doubled to US$10 million, while its capital increased to US$38.7 million, up from US$32.3 million the previous year.
“Our foundational business model remains sound, and the leadership transitions are designed to enhance our capacity for growth and expansion, while maintaining the continuity of our operations,” the company said.
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