November 13, 2020

Multi-purpose port terminal operator Kingston Wharves Limited (KWL) on Wednesday reported an unaudited after-tax surplus of $1.6 billion for the nine-month period ended September 30, 2020. This represents a 16 per cent decrease compared to the previous corresponding period. For the period under review, KWL recorded consolidated revenues of $5.1 billion, an 11 per cent or $615 million decline over the corresponding period in 2019. The company’s terminal division generated operating revenue of $4.0 billion for the nine-month period, representing a decrease of 11 per cent over the previous corresponding period, while divisional profits stood at $1.5 billion, declining by 18 per cent. However, according to Chairman Jeffrey Hall, despite the dip in revenues and profits influenced by the global fall-off in shipping volumes due to the novel coronavirus pandemic, the terminal division remains a key profit centre of KWL. He added that the relatively strong performance in the logistics services division — an identified growth area — is “reason for optimism”. For the nine-month period, the division generated revenues of $1.5 billion, a decrease of one per cent over the prior year, while divisional profits increased by nine per cent when compared with the corresponding period in 2019, moving from $499 million to $543 million. “Kingston Wharves have begun to see positive signs of a recovery in the two main operational segments of our business. Our robust business continuity strategies have kept the company on a positive trajectory, even as we make the critical pivot to maximise the returns from emerging opportunities,” Hall said in the report to shareholders. He further indicated that nearshoring is expected to become a greater feature of the global supply chain as companies and economies seek to diversify their supply sources for increased efficiency and as a contingency against shocks to the global economy. To this end, Hall noted that KWL is well prepared to meet the expected demand for nearshore warehousing solutions and has positioned itself to add greater value to customers by leveraging its Special Economic Zone (SEZ) status to deliver customised, tax efficient solutions to meet their supply chain and logistics needs. “The observance of our 75th anniversary in the midst of a global pandemic is a powerful reminder that we are resilient because our roots run deep and we are built on a solid foundation,” Hall said. “We remain in a cautious but determined expansion mode, characterised by the pursuit of opportunities for vertical integration, product and service diversification and investment in our workforce, logistics-centred infrastructure and business processes enabled through digital technology,” he added. “We believe that we have laid the solid groundwork to move forward post-pandemic and to restore the growth of our business. Kingston Wharves continues to be highly profitable and able to benefit from a strong balance sheet,” said Hall. Source: http://www.jamaicaobserver.com/business-report/kingston-wharves-records-1-6-billion-net-profit-for-nine-month-period_207591?profile=1056

A month after acquiring drinks manufacturer Jamaica Beverages, Trade Winds Citrus has entered the milk market with a protein shake under the brand name Tru-Shake. The product released last week will compete against the imported brand Ensure. Trade Winds also plans to launch a Tru-Almond milk by year end. Production and distribution arrangements between Trade Winds and joint-venture partner Wisynco will be extended to include any new line of milk and beverages produced by the newly acquired Jamaica Beverages assets. “This locally made product has the same amount of protein and nutrients as Ensure but is priced about 30 to 40 per cent cheaper, so we expect it to do very well,” said William Mahfood, chairman of Wisynco Group Limited. “Very soon, we plan to start distribution of our locally produced milk as well and it will give us more opportunities to displace imports,” he said. Trade Winds said in a release that US$3 million was invested in the new milk manufacturing line. The beverage companies’ entry into the milk market will give fillip to the business that has been eroded under the pandemic, with the temporary lockdown of hotels, the continued lockdown of schools, and limited entertainment activity. In the September quarter, Wisynco experienced a slippage in revenue to $8.1 billion and a decline in earnings by 9 per cent to $851 million. Sales on the local market trended downwards, but was somewhat offset by increased international sales which jumped 43 per cent; lowered administrative and distribution expenses; and greater efficiencies from the commissioning of its cogeneration plant. “While we have lost some business on the local market since the pandemic, we have picked up quite a few business [opportunities], with the renewed focus on the export markets,” Mahfood said. “We expect the expanded lines of products to bring back some local revenue for us over the next quarter,” he said. The business partners did not disclose how much of the milk market they are targeting, and the level of business they expect to claw from imports, which dominate upwards of 70 per cent of locally consumed milk products. Trade Winds, which had been making plans to enter the dairy market for three years, accomplished its goal when it acquired the assets of Jamaica Beverages Limited, a failed drinks company whose products included the milk brand Dairy Farmers. The two companies were once rivals, operating from adjoining properties in Bog Walk, St Catherine. Since the acquisition, Jamaica Beverages has been operated as a satellite of Trade Winds Citrus, with selected staff reporting to Trade Winds executives. Trade Winds will continue to manufacture the Diary Farmers and Juciful brands, previously produced by Jamaica Beverages, along with other brands under development by Trade Winds. Source: http://jamaica-gleaner.com/article/business/20201113/partners-trade-winds-wisynco-enter-milk-market-tru-shake