BIZBRIEFS | Earnings Reports
Big fall-off in cigarette revenue at Carreras
Cigarette distributor Carreras Limited experienced a steep fall of nearly half-billion dollars in revenue for the quarter ending June.
The company's sales amounted to $2.9 billion over three months. That's down from $3.4 billion in the June 2016 quarter.
Carreras has blamed taxes for the shrinkage. It was last hit with new special consumption taxes in March.
The company is also pointing to an upsurge in the presence of illicit cigarettes following the $3 per stick increase in the excise rate as well as competition from other brands that, it says, are being sold at prices below the minimum tax applied to a pack of cigarettes.
Kingston Wharves sets year end date to launch logistics facility
Kingston Wharves Limited plans to launch its new logistics facility by year end. The port company spent $660 million on the facility during the first half of this year to wrap up the multibillion-dollar project.
The facility has been under development since 2014. Since then, the wharf has introduced new services while widening its customer base. Additional projects currently under way include the commissioning of on-dock bulk storage facilities, a near-port global automotive centre and a terminal resurfacing and rehabilitation programme, the company stated.
"Prior to the end of the financial year, these initiatives will be further supported by the launch of our Total Logistics Facility," stated Chairman Jeffrey Hall in the preface of the company's June quarter financials. KWL's financial year ends in December.
The port company reported earnings of $750 million from $2.9 billion of revenue at half-year.
Sterling looks ahead to better results
The bottom line at Sterling Investments Limited took a hit at half-year, falling 32 per cent to $43 million.
The decline was tempered by a gain on the sale of investments, which quadrupled to $21 million. Sterling Investments attributes the gains to the overall improvement in the bond markets.
The company, which is managed by Sterling Asset Management Limited, also suffered from the relative appreciation of the Jamaican dollar.
"A big chunk of the assets are in US dollars," said Managing Director of Sterling Asset Charles Ross. "The exchange rate is not something we have any control over, but we'll focus on assets that earn a decent return and take trading gains where we can. We're confident that our profit position at the end of the year will be better than it has been for the beginning of the year," Ross said.