JAMAICA PRODUCERS Group earned a profit of some $46.6 million in the 24-week period ended June 17, 2000, compared with $96.4 million in the six month period ended June 30, 1999, but directors blamed depressed conditions and illegal imports into the European Union for slashing their revenues and profits in the United Kingdom (UK).
Close to 70 per cent of the Group's revenues is generated overseas.
Gross operating revenue during the period under review for Producers, which is engaged in agricultural production, shipping, marketing and distribution of bananas and other fresh produce locally and overseas, production of fresh juices overseas and investments, was $5 billion. Gross operating revenue for the six month period ended June 30, 1999 was $5.6 billion.
Operating profit for the 24-week period ended June 17, 2000 was $74.8 million, compared with $222 million for the six month period ended June 30, 1999.
Gross operating revenue comprises the Group's gross sales of goods and services, commissions earned on consignment sales net of returns, UK Value-Added Tax and General Consumption Tax and investment income.
Revenues and profits in the UK have been "reduced due to depressed conditions exacerbated by illegal imports into the European Union", the directors said.
On January 1, 2000, the Group changed its management accounting year from twelve calendar months to 13 four-week periods. The current results reflect the first six periods ending on June 17 this year and these are compared with a two-week longer period ended June 30, 1999.
The directors said that "there are significant seasonal variations in some of the Group's activities, and so the results for any period are not necessarily indicative of the final results for the whole year."
Earnings per share amounted to $24.91 cents in the review period compared with $51.54 cents in the previous year's six-month accounting period.
Jamaica Producers focuses on niche marketing and selected joint ventures, such as the 35 per cent involvement of Dole in Producers' banana business in the UK. Jamaica Producers also has 100 per cent owned subsidiaries operating in the UK, the USA, Costa Rica and the Cayman Islands.
