Food trader Caribbean Producers Jamaica Limited, CPJ, wraps up a profitable year with the opening of a third store and the expansion of its e-commerce platform.
New CPJ Drax Hall Market had its first day of operation on Tuesday, October 18, after investing US$400,000 to set it up, said CPJ President and Acting CEO Mark Hart.
The company has also set up cold storage on site to make the product easily accessible to nearby hotels and restaurants, he added.
Hart said the opening of the new site is one of three moves to capitalize on the forward momentum the business has been enjoying since reopening the tourism industry as it recovers from the pandemic. of COVID-19. The other two initiatives concern the launch of two platforms: one for B2B or business-to-business transactions and the other for business-to-business transactions or “B2C platform which is essentially an online store more suitable for individual customers”, Hart said.
The company increased its inventory and added three refrigerated trucks to facilitate deliveries of orders received through the platforms and worked with social media influencers to raise the profile of the online store.
The size of the investment in the online platforms was not disclosed. Hart said they were developed in-house.
As with the B2B site, small and medium-sized customers using the platform have access to their purchase history and order recommendations. Businesses can also view their accounts payable, as well as CPJ’s inventory.
Resumption of sales
Caribbean Producers recently released its audited accounts showing a strong resurgence in annual sales from US$58 million to US$120 million.
The company also went from a loss of US$2.52 million to a profit of US$7.72 million in June 2022.
During the year, CPJ increased its total assets by 33%, reflecting higher inventory levels, as well as increased accounts receivable. Receivables correspond to goods sold but not yet paid for.
Hart said the increase in inventory levels, which doubled from $21 million to $40 million, was deliberate to avoid stockouts amid continued uncertainties surrounding shipping delays.
CPJ also decided to restructure its existing debt, issuing US$13 million of unsecured fixed rate notes in the process. The bond is priced at seven percent and matures in five years, but interest will increase to 10 percent in the event of default.
“It was just a restructuring of existing debt into a marketable security. It’s a tough time to access capital, but we were able to get the job done through our Mayberry financial advisors,” Hart said.
CPJ also said it paid off $8.4 million in debt during the year.
neville.graham@gleanerjm.com
