Wisynco posts $2.5 billion in six-month profit, but cites rains, low remittances and reduced tourist arrivals as impacts on bottom-line

 


Distributor and manufacturer Wisynco Limited posted revenue of $14.2 billion for second quarter ended December 31, 2024, which, although 7.2 per cent above the $13.2 billion of the same period in 2023, was reported as below par due to falling remittances, tourism arrivals and excessive rain.

Wisynco Group Limited is located in St. Catherine, Jamaica, operating from its WATA manufacturing plant, and distribution activities at Lakes Pen, while the White Marl campus manufactures all other beverages.

Wisynco bottles for Coca-Cola and markets a portfolio of 142 brands from food and beverage manufacturers locally globally.

Revenues for the quarter of $14.2 billion represent an increase of 7.2 per cent above the $13.3 billion achieved in the corresponding quarter of the previous year however this fell slightly below expectations said management.

They explained, “The slowdown observed in the first quarter, driven by a reduction in remittances and softening of visitor arrivals, continued throughout the second quarter and was in fact compounded upon by the cool temperatures and significantly more rain than expected, making Q2 one of the rainiest quarters in some time both of which typically impacts fast moving consumer goods consumption adversely.”

Greater selling, distribution and administrative expenses (SD&A) for the quarter totaled $3.5 billion or 13.5 per cent more than the $3.1 billion for the corresponding quarter of the prior year. These were linked to plans for expansion.

Profit before taxation for the quarter was $1.2 billion or 18.6 per cent lower than the $1.5 billion of the comparative quarter for the prior year.

Wisynco recorded net profits attributable to stockholders of $991 million ($1.2 billion for the comparable quarter of the prior year), or 26c per stock unit for the quarter compared to 32c per share for fiscal 2024.

The business has earned $2.5 billion in net profit after taxes, a 10.2 per cent reduction year over year. EBITDA of $3.9 YTD is down only 4.2 per cent year on year.

From a balance sheet perspective, the business ended the quarter with $8.0 billion of cash and investment securities when compared to $11.5 billion in the previous year, the reduction primarily due to investing an additional $2 billion in plant and equipment.

Management concluded, “ Wisynco remains committed to strategic planning to mitigate risks to our operations. Our recent investments in plant and equipment capacity, along with new production initiatives, will enhance our ability to diversify and navigate challenges effectively.”

Wisynco’s products are exported to Antigua, Bahamas, Trinidad, Grenada, Dominica, St. Lucia, Barba- dos, St. Vincent, Belize, Curaçao, Grand Cayman, Aruba, St. Kitts, St. Maarten, British Virgin Islands, US Virgin Islands, Bermuda, the United Kingdom, the Netherlands, the United States, Canada, Guyana, Panama and Suriname.

The Company produces owned trademarked products include WATA, BIGGA soft drinks, CranWATA, Sparkling CranWATA, and BOOM Energy Drink.

Additionally, Wisynco is the exclusive bottler and distributor for brand portfolios Coca-Cola and Squeezz beverages. Imported food and beverage brands include Kelloggs, Häagen Dazs, Yoplait, Nestle Ice cream, and locally manufactured products from Tradewinds, Worthy Park Estate, and JP Snacks.

Photo credit: Linkedin

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