1 day ago
2
Blue Power Group, a leading soap maker, has announced a turnaround plan aimed at restoring growth and profitability after being hurt by Hurricane Melissa and the imposition of duties on raw materials.
Chairman Jeffrey Hall said the plan rests on three pillars: cutting costs, new products, and expanding distribution.
He noted that progress is already being made on all fronts and that improved results are expected in the fourth quarter and into the next financial year.
“We are satisfied with the progress on all of these objectives and expect improved results in the fourth quarter and in the subsequent financial year,” he indicated.
Second‑quarter sales to October 2025 fell to $159 million or one-third less than the $235 million a year earlier. Profit dropped to $14.8 million, down from $38.6 million in the prior year.
“The results were adversely affected by the loss of production and sale days at the end of October due to Hurricane Melissa,” Hall stated in the preface to the financials. He added that the imposition of “40 per cent duties on raw materials” has “seriously” affected the price competitiveness of certain classes of products, in turn reducing “revenue and profitability.”
Its year-to-date performance from May to October 31, also suffered with profit halving to $43.7 million from $87.1 million in the same period last year.
The company makes the Blue Power brand of cake laundry soap and produces bar soaps for personal care under its own label and for clients. It plans to expand into liquid soaps within two years.
The passage of hurricane Melissa on October 28 led the company to lose a few days of production and sales, which added another shock to the operations.
In January 2024, the Caribbean Court of Justice upheld a 40 per cent duty on soap noodles in a case brought by Dominica’s DCP Successors Limited against Jamaica. The ruling left local soap makers, led by Blue Power, facing a dilemma: either use duty‑free inputs from within Caribbean Community (CARICOM) — which some manufacturers say are inadequate or available only in small quantities — or pay the full tariff to import similar raw materials from Asia.
Jamaica imports US$19 million or roughly J$3 billion worth of soaps and active products annually, according to United Nations trade data. The majority of that or US$10.3 million relates to bars and laundry cake soap, US$2.8 million to flakes, granules and powders, and US$5 million to skin soaps. Exports total about US$700,000.
Blue Power continues to challenge aspects of the CARICOM regime, arguing that exemptions should apply when raw materials are not available regionally in sufficient quantity or quality. “CARICOM has notified the industry that if regularly used raw materials are not available within the region, with the required quantity and quality, there is the basis for duty exemption,” Hall said and added that the long‑term viability of bath and hotel soaps depends on timely application of the exemption.
Despite the earnings decline, Blue Power’s balance sheet remains strong, with cash and investments totalling about $550 million at the end of October. Its associated company, Lumber Depot Limited, also performed satisfactorily during the period. Capital stood at $1.8 billion, up from $1.7 billion a year earlier.
English (US) ·