Jam Teas grows yearly earnings

Jamaican Teas Limited emerged relatively unscathed by Hurricane Melissa, with no damage to its complex at Temple Hall nor its supermarket and unsold studio apartments.

Additionally, two-thirds of the group’s manufacturing sales are exported to countries that suffered no ill effects from Melissa and are not directly affected, Jamaican Teas said in a market filing at midweek.

But the company sees potential problems ahead.

“We grieve for those of our fellow Jamaicans who lost their lives, their livelihoods and their properties in this horrible tragedy. We will play our part in participating in the enormous rebuilding effort that awaits our country,” the tea maker said in a market filing at midweek.

“The damage caused by the hurricane will significantly dampen local sales demand for at least the first half of 2025-26, if not longer,” it said in the filing on the Jamaica Stock Exchange.

That outlook puts a slight damper on the good finish the company reported for year ending September 2025. The numbers are preliminary, but the early indication is that Jamaican Teas doubled shareholder profit from $124 million to $260.64 million in a turnaround from the turbulence of early 2025, when it grappled with investment losses and rising costs.

The size of the profit jump was also influenced by one-off losses of $100.8 million booked in 2024, from the sale of Jam Teas’ Bell Road factory in Kingston, with no similar losses recurring in the current financial year.

Inclusive of non-controlling interests, group profit climbed from $207 million to $272 million.

Jamaican Teas is in the business of producing teas under the Tetley and Caribbean Dream brands as well as other food products, market investing through QWI, real estate development, and retail grocery.

Group revenue grew nine per cent from $3.18 billion to $3.49 billion at year ending September.

Manufacturing revenue grew eight per cent in the fourth quarter and 16 per cent for the year, buoyed by 13 per cent growth in local sales and 22 per cent in exports. Exports accounted for 61 per cent of total manufacturing revenue.

Group CEO John Mahfood said the increase in exports was mainly due to sales to Caricom countries.

“We see that our sales to Caricom now exceed our domestic sales. We’ve been at it for so long that we’re well established. We believe that we will grow as the economies of the Caricom countries grow,” Mahfood said.

Retail revenues jumped 15 per cent for the quarter, reflecting stronger consumer demand and improved inventory management.

One of the drivers of the profit surge was the rebound in the company’s investment arm, QWI Investments Limited. After suffering heavy unrealised losses earlier in the year, QWI reported a net profit of $87.6 million for the fourth quarter, reversing most of the prior setbacks. Gains were fuelled by rising share prices on US exchanges and a recovery in local holdings.

The investment subsidiary still made a small loss for the 2025 financial year, despite its fourth-quarter turnaround.

Asked whether the bounce was sustainable, Mahfood said the answer has been complicated by Hurricane Melissa.

Before the hurricane hit, QWI’s managers had done a review of the company’s investment portfolio, the state of the stock market, and the state of the economy and where they expected it to go.

“We were optimistic that we were going to see a decent performance in the next financial year,” Mahfood said.

But now there is doubt.

“At this point, I don’t know the answer because it’s so early in the day in terms of the impact of the hurricane. When you think of our investments – like Caribbean Cement Company; we have some shares in Lumber Depot – some will do very well out of the problem we’re having,” he opined.

Others like the Dolphin Cove marine park, which is dependent on tourists for revenue, may see a dampening in the quarter ending December and possibly into the second quarter, he added.

The situation will become clearer over the next two or three months as information emerges regarding the impacts on the hotel sector, how fast insurance claims are going to be settled, how quickly JPS systems can get back fully online, and roads cleared, Mahfood noted.

“I think these things will give us a better idea of what to expect next year. But for sure, I think the next six months are going to be problematic for the business sector,” he said.

neville.graham@gleanerjm.com