3 months ago
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Wisynco Group Limited reported a net profit of $971 million for the third quarter ended March 2025, reflecting a 17.5 per cent decline year-on-year due to market softening.
“In general, there was a softening in the market due to lower demands across all markets,” said CEO Andrew Mahfood in the preface to its financials. Additionally, logistics challenges in major export markets further dampened performance.
Despite current market softness, Wisynco remains optimistic about revenue opportunities in the upcoming fiscal year.
“We believe we will see additional revenue streams which should reduce our selling, distribution and administrative expenses,” Mahfood noted.
Wisynco, which is one of the largest producers and distributors of drinks in Jamaica, utilises substantial volumes of plastics for packaging. Consequently, its sustainability efforts are sizeable, collecting over 4.6 million pounds of plastic bottles year to date – 23 per cent more than a year ago – from its recycling project that collaborates with Recycling Partners of Jamaica.
During the quarter, Wisynco noted reduced demand in its main retail markets, which would include supermarkets and schools, as well as “in the hotel and food service categories”. Export revenues were also hampered due to logistic issues in major markets.
This 17.5 per cent reduction in profit in the March third quarter came despite a 4.8 per cent increase in revenue, which rose to $13.73 billion from $13.1 billion. It meant that costs were rising faster than income.
Revenue gains were driven by Wisynco’s core brands, which includes its popular Wata water and flavoured-water products. The company is also the exclusive bottler for Coca-Cola in Jamaica, distributor of other drinks as well as multiple consumer brands, such as Kelloggs.
Despite a 2.6 per cent increase in gross profit to $4.5 billion, gross margin slipped to 32.8 per cent, down from 33.5 per cent in the same period last year. This drop was attributed to higher fixed costs in production. Selling, distribution, and administrative expenses combined rose to $3.5 billion, marking a 9.3 per cent year-over-year increase and contributing to the net profit decline.
For the nine months ended March 2025, Wisynco generated $42.6 billion in revenue, a 6.3 per cent increase, compared to $40.1 billion in the prior year. Net profit for the same period amounted to $3.46 billion, which was 12.4 per cent less than the $3.95 billion reported a year ago.
The company maintained a solid cash position with $8.5-billion holdings in cash and investment securities.
English (US) ·