Profit dips for furniture maker JFP as large projects await completion
Furniture maker JFP Limited (Jamaica Fibreglass Products), for the fourth quarter ending December 31,2024, reported revenue decline of 50 per cent from $148.5 million to $74.5 million compared to the corresponding quarter in 2023
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.
Sales declined primarily due to setbacks in the completion of several forecasted projects. Full year revenue declined by one per cent from $411.1 million to $407.5 million.
Gross profit margin declined from 52 per cent to 36 per cent due to increased cost of sales.
CEO Metry Seaga said that the increase in cost of sales was driven by higher than projected costs on certain special design build contracts.
Meanwhile, operating expenses declined by seven per cent from $250.8 million to $233.2 million due primarily to cost reduction measures, the CEO outlined.
Full year net loss was $107 million compared to $59 million loss made in the corresponding period last year.
For JFP property, plant, and equipment increased by six per cent, from $78.1 million to $82.7 million due to the acquisition of tools and equipment that have improved the production process.
Investments decreased by 19 per cent, from $9.4 million to $7.7 million, due to a decline in the value of equity holdings.
Inventory decreased by 18 per cent from $116.7 million to $96 million, driven by the completion of major projects which reduced the company's work-in-progress inventory.
Receivables increased by 20 per cent, from $147.3 million to $177.2 million. Shareholder’s equity declined by 80 per cent, from $133.4 million to $26.6 million primarily due to losses incurred in the fourth quarter.
Net loss for the final quarter was $41 million compared to a net loss of $29.10 million made in the corresponding quarter of the previous year.
In the final quarter, finance cost decreased by 53 per cent from $7.6 million to $3.6 million mainly to a decline in bank charges, interest expenses and foreign exchange losses.
Photo: CEO JFP Metry Seaga
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