Fosrich halts plan to enter United States market

 


FosRich  indicates that the company has halted plans to enter the United States market, until further notice in a report attached to audited results for 2024.

 Now in its  seventh year after  listing on the Junior Market of the Jamaica Stock Exchange on 19 December 2017, management stated in the  MDA attached to audited results for 2024, “ We are cognizant that despite the challenges ahead within our local operating space and the wider global space, we have the right talents and leadership to deliver on our plans for the ensuing period. We will continue to execute our plans to ensure that we remain competitive and deliver value solutions to our customers.”

The company is meanwhile pressing ahead meanwhile with local and regional plans for expansion. Construction of a new FosRich store and office at 76 Molynes Road is advanced, with completion date now projected to be Q3, 2025.

FosRich has a staff complement of two hundred and forty across ten locations in Kingston, Clarendon, Mandeville, and Montego Bay. Its energy and electrical engineers offer technical advice and install solar energy systems, solar water heaters and electrical panel boards.

For the year ended December 31, 2024, revenues were $3,680 million, compared to $3,697 million.in the prior year. Gross profit was $1,749 million, compared to the prior period’s $1,572 million. Net profit was $35 million, compared to the prior period’s $235 million. Earnings per stock unit were $0.01, compared to the prior period’s $0.05.

 2024  numbers are affected by the substantial fall in PVC and solar panel cost on the world markets, in addition to the slowness in housing-starts locally, caused primarily by the considerable increase in interest rates in Jamaica in the current period when compared to the prior year.

Operating expenses for the year were $1,433 million, reflecting an increase of $251 million on the prior reporting year’s amount of $1,182 million. The changes were driven primarily by increased staff related costs for the new super-store, for salary adjustments and improvements in staff benefits; increased travelling and motor vehicle expenses; increased insurance costs due to increases in policy renewal rates and increased depreciation due to increases in the carrying values of property plant and equipment, increased professional fees, increased rent, increased advertising and increased security cost.

 

 Net finance cost for the year was $240 million compared to $140 million for the prior year, an increase of $100 million. This increase is tied to debt refinancing in a high-interest rate environment and additional loan financing.

 

Caribbean Money Daily

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