3 weeks ago
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After four consecutive quarters losses, air quality company CAC 2000 Limited is back in the black. For the third quarter ended July 2024, the company reported a profit of $11.72 million, a 143.6 per cent improvement that reversed the $26.87-million loss for the similar quarter in 2023.
This came on the back of the 22.29 per cent increase in revenue, which climbed from $251.26 million to $307.27 million
As to CAC’s performance over the nine-month horizon ending July, there was an 18 per cent increase in sales to $752.81 million, from $637.76 million for the similar period in 2023. The company carved down its losses by 41 per cent but still bled $41.73 million, indicating that CAC 2000 still has a mountain to climb to cap the financial year in the black. Losses in the prior period topped $70 million.
CAC, which is a supplier of air conditioning systems, is suffering the consequences of past events that were outside its control.
The company was hit hard by the reconfiguration of the Marcus Garvey Drive road network at the Three Miles intersection where its business is based. The building of a new overpass literally blocked the main entrance to the company’s premises, hindering the flow of business.
In addition, the COVID-19 pandemic stymied its business, due to delays in shipping and higher freight costs.
The logistical problems have lingered until now. The company says it is still being hobbled by longer shipment times, but notes that it is also seeing improvement in inventory days, that is, the time it takes to convert inventory to sales, which has fallen from 398 days to 300 days.
As a form of reset, CAC 2000 has pivoted to a business model that emphasises air quality rather than air conditioning. This has seen the company diversifying its business into humidifiers and air filters, rather than simply going after large air conditioning contracts.
To alleviate the problem of remoteness at Marcus Garvey Drive, the company also opened a store within the shopping hub of Half-Way Tree in Kingston.
The retail store at Unit 3U Village Plaza seems to be helping.
“We continue to utilise our retail store located at 3U Village Plaza to improve the delivery of product offerings and services to our customers, while building the team in Montego Bay, which is becoming the hub for the projects we are presently executing on that side of the island,” said CEO Gia Abraham in her report to shareholders on CAC’s third-quarter performance.
“As a company, we are encouraged by this positive trajectory,” Abraham said.
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