JFP pursues automation, new products, new markets
JFP Limited (Jamaica Fibreglass Products) this week reported that, year to date for the third quarter ended September 30, 2024, the enterprise made net losses of $65.8 million compared to $30 million loss made in the corresponding period last year.
Management on Tuesday December 3, 2024, told Caribbean Money Daily that losses were due to supply chain disruptions. “On-going global supply chain issues particularly caused by geo-political tensions are affecting the availability and costs of raw materials.”
Also affecting operations were rising energy and production costs- increasing energy prices, labour costs and inflation have sometimes caused the company to absorb additional costs, they outlined.
The company they said was also affected by talent shortages and skills gap, noting, “JFP Limited has been faced with challenges in attracting and retaining skilled workers."
The company they said was also affected by talent shortages and skills gap, noting, “JFP Limited has been faced with challenges in attracting and retaining skilled workers."
CEO Metry Seaga indicates that JFP will be focusing on cutting costs by introducing automation by 2025. For this JFP has secured additional loans from EXIM Bank to finance the purchase of machinery and equipment, as well as to provide working capital to secure large orders.
This will enable JFP, he said “to enhance operational capacity and meet the financial requirements of contracts, ensuring continued growth and business expansion.”
Going forward, Metry Seaga said, the company will continue to invest in automation to improve productivity and reduce labour costs.
JFP will also be investing more in business development to introduce new products to new and existing markets, he noted.
New loans resulted in an 85 per cent increase in finance costs,
JFP’s revenue comes mainly from hotel industry, government agencies and restaurants with most coming from restaurants as was stated in the company’s prospectus prior to its listing in March 2022.
Year to date Revenue increased by 27 per cent from $262.7M to $333 million. Gross profit margin declined from 53 per cent to 3 per cent due to increased cost of sales.
Management noted that cost of sales increased due to cost overruns for certain design-build contracts as well as the additional cost associated with the increase in the level of sales.
The company designs, builds and installs custom-built commercial furnishings in Jamaica, offering restaurant decor packages, such as tables, chairs, planters, garbage bins, counters, and divider walls; office furniture comprising desks, workstations, chairs, file cabinets, and computer desks; and hotel furnishing products, including bed bases with headboards, nightstands, luggage racks, TV units, desks, tables, chest of drawers, closets, sofa chairs, moldings, and valances.
JFP exports its products to the Caribbean and Latin America. The company was formerly known as Jamaica Fibreglass Products Limited and changed its name to JFP Limited in December 2021.
JFP, incorporated in 1985 based in Kingston, was listed on the Junior Market of the Jamaica Stock Exchange in March 2022.
For the third quarter ended September 30, 2024, management said that cost of sales increased due to cost overruns for certain design-build contracts as well as the additional cost associated with the increase in the level of sales.
The period, they said, saw the completion of several design-build contracts which experienced cost overruns. Administrative expenses increased by 29 per cent from $43.5 million to $56 million driven by increases in various operational costs such as insurance, salaries, and tools with a short lifespan.
Selling and distribution expenses increased by 178 per cent due primarily to increases in fees paid to commissioned sales agents.
Finance cost increased by as previously noted grew 85 per cent due to additional loans obtained in this quarter compared to corresponding period last year. Net loss for the period was $75.4 million compared to a net profit of $8.5 million made in the corresponding quarter of the previous year.
Management said that they intend to pursue collaboration with HEART to obtain skilled workers and provision training and development programmes to improve workers skills and adaptability.
This will enable JFP, he said “to enhance operational capacity and meet the financial requirements of contracts, ensuring continued growth and business expansion.”
Going forward, Metry Seaga said, the company will continue to invest in automation to improve productivity and reduce labour costs.
JFP will also be investing more in business development to introduce new products to new and existing markets, he noted.
New loans resulted in an 85 per cent increase in finance costs,
JFP’s revenue comes mainly from hotel industry, government agencies and restaurants with most coming from restaurants as was stated in the company’s prospectus prior to its listing in March 2022.
Year to date Revenue increased by 27 per cent from $262.7M to $333 million. Gross profit margin declined from 53 per cent to 3 per cent due to increased cost of sales.
Management noted that cost of sales increased due to cost overruns for certain design-build contracts as well as the additional cost associated with the increase in the level of sales.
The company designs, builds and installs custom-built commercial furnishings in Jamaica, offering restaurant decor packages, such as tables, chairs, planters, garbage bins, counters, and divider walls; office furniture comprising desks, workstations, chairs, file cabinets, and computer desks; and hotel furnishing products, including bed bases with headboards, nightstands, luggage racks, TV units, desks, tables, chest of drawers, closets, sofa chairs, moldings, and valances.
JFP exports its products to the Caribbean and Latin America. The company was formerly known as Jamaica Fibreglass Products Limited and changed its name to JFP Limited in December 2021.
JFP, incorporated in 1985 based in Kingston, was listed on the Junior Market of the Jamaica Stock Exchange in March 2022.
For the third quarter ended September 30, 2024, management said that cost of sales increased due to cost overruns for certain design-build contracts as well as the additional cost associated with the increase in the level of sales.
The period, they said, saw the completion of several design-build contracts which experienced cost overruns. Administrative expenses increased by 29 per cent from $43.5 million to $56 million driven by increases in various operational costs such as insurance, salaries, and tools with a short lifespan.
Selling and distribution expenses increased by 178 per cent due primarily to increases in fees paid to commissioned sales agents.
Finance cost increased by as previously noted grew 85 per cent due to additional loans obtained in this quarter compared to corresponding period last year. Net loss for the period was $75.4 million compared to a net profit of $8.5 million made in the corresponding quarter of the previous year.
Management said that they intend to pursue collaboration with HEART to obtain skilled workers and provision training and development programmes to improve workers skills and adaptability.
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