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Berger Paints Jamaica Limited entered the final quarter of 2025 on a strong footing, with a near one-fifth spike in revenue in the July-September period, and a five per cent gain year-to-date, positioning the paint and coatings manufacturer for a year of record sales.
But that was before Melissa came calling.
Revenue in the third quarter rose to $866 million, pushing year-to-date sales to $2.4 billion. The company also swung from a loss of nearly $34 million to profit of $13 million in the third quarter as it clamped down on costs and its supply chain stabilised, according to General Manager Dwaine Williams. Nine-month profit doubled from $9 million to $18 million.
However, the optimism embedded in those numbers has been tempered by the catastrophic impact of Hurricane Melissa, which struck Jamaica on October 28, right at the start of the peak “painting season”.
Traditionally, October through December accounts for 65 to 70 per cent of Berger’s annual profits, driven by residential upgrades and commercial refurbishments. That cycle has been upended by the storm.
“Sustainability has gone through the window with what’s happened,” Williams said in an interview with the Financial Gleaner. “Close to 70 per cent of our business comes through this part of the year, and that has been decimated. Our stuff — paint, coatings — is not a priority right now,” he lamented.
Berger’s infrastructure escaped major physical damage, but is bracing for blow to its market. Hardware stores in western Jamaica, a key distribution hub, were battered. Projects are delayed, and residential customers are focused on essentials — nails, zinc, lumber — rather than sprucing up walls and refreshing façades.
“You don’t eat paint, you don’t drink paint,” Williams said, underscoring the discretionary nature of the product category in a disaster-recovery context.
The company had geared up for a bumper season, with inventory and raw materials in place to “blow the doors off” last year’s historic performance; instead, production plans have been ratcheted back.
“It would be foolhardy to be producing stock, not knowing what’s coming,” Williams said. “We’re agile in demand planning, but right now, it’s touch-and-go,” he said.
Williams sees that rebound coming — but not immediately.
“It’s going to be a tough couple of months,” Williams admitted. “We watch and hope for the best,” the GM added.
“We’re banking on a bumper half-year next year as structures get back up, hotels look to touch up before reopening,” he said.
Berger’s report to shareholders also acknowledged the uncertainty.
“The scale of devastation to lives, infrastructure, and business operations is unprecedented … . We anticipate a meaningful negative impact on our performance for the remainder of the financial year, with recovery likely to extend beyond the fourth quarter,” it said under the signature of Chairman Christian Llanos.
In the meantime, Berger is balancing “commerce with conscience”, supporting trade partners and national relief efforts while managing cash prudently, Williams noted.
The paint company closed the September quarter with $148.3 million in cash, down from $215.17 million a year earlier, after dividend payouts and capital expenditure.
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