Pan Jamaica Group eyes growth opportunities

 

In its new annual report, directors of Pan Jamaica Group state  that Group  strategy is to continue to tap  opportunities for growth. Focus remains on Property and Infrastructure, Financial Services, Specialty Foods and Global Services (principally shipping and logistics). Within each segment PJ emphasizes investing in strong businesses with differential products or services.

Pan Jamaica Group Limited is a multi-national group of companies operating primarily in four business segments: Property and Infrastructure; Financial Services; Specialty Food and Global Services.

Listed on the Jamaica Stock Exchange, the company has head office in in Jamaica and businesses across the Caribbean, North America and Europe.

2024 was the first full year of trading of the Group following the amalgamation of PanJam Investment Limited with the core operating businesses of Jamaica Producers Group Limited.

The transaction, which was completed on 1 April 2023, saw the Group, under its former name of PanJam Investments Limited, acquire JP’s business interests in Specialty Foods, Global Logistics and Infrastructure which had been restructured by JP under a single holding company - JP Global Holdings Limited. PanJam acquired JPGH in exchange for newly issued shares amounting to 34.5 per cent of PJG.

 On completion of the transaction, the Group assumed the Pan Jamaica Group Limited name.

Management stated in the 2024 annual report, “The amalgamation with JPGH brought both industry and geographical diversification that presents a wider platform of opportunities. It also brought proven, robust earnings and a substantial assets base. These assets included a large pool of liquidity, major tangible asset platforms and wide management expertise.”

The Group’s full year revenues grew from $29.0 billion to $40.0 billion an  increase of 38 per cent. A substantial part of this increase came from the inclusion of 12 months of the JPGH businesses compared to only 9 months in the prior year, however, there was also significant increases in the revenues.

When 2023 is normalised to allow a like for like comparison, the like for like revenues of the Group increased by 11 per cent. The Specialty Food segment is the largest contributor to the revenues of the Group and also led the increases, with like-for-like revenues up 13 per cent, although there was also strong growth in Global Services, up 8 per cent, and Property and Infrastructure, up 9 per cent.

 In 2024 approximately 56 per cent of the Group’s revenues were derived outside of Jamaica, with Europe representing 46 per cent of the Group’s revenues and North America and the wider Caribbean accounting for 10 per cent.

Approximately 82 per cent of the Group’s revenues being invoiced to an international base of customers in major reserve currencies such as the euro, US dollar or British pound.

Net profit attributable to owners of the parent was $4.6 billion and earnings per stock unit $2.82 $1.69. Total assets at yearend was $143.6 billion.

Income from associated companies decreased in 2024 to $3.2 billion, from to $4.2 billion in 2023.

The Group’s net profit grew by 63 per cent or $2.4 billion, from $3.7 billion in 2023 to $6.1 billion in 2024 and after accounting for the share of profit attributable to non-controlling interests, the Group’s net profit attributable to shareholders, grew by 82 per cent to $4.6 billion.

In 2023 the Group recorded fair value losses of $1.5 billion due to declines in listed equities and substantial write downs in the value of unlisted debt and equity investments.

Management noted, “Whilst in 2024 we continue to incur losses on our listed and unlisted equity investments, this was substantially reduced to $276 million. The Group successfully divested a non-core property related associated company which resulted in a gain on disposal of shares in associated company of $350 million.”

The Group’s finance costs increased from $1.4 billion in 2023 to $1.7 billion in 2024. This was partly due to the full year of JPGH inclusion post amalgamation which Pan Jamaica Group Limited.

Caribbean Money Daily