Caribbean Producers Jamaica going after business in cruise sector
Published:Thursday | April 26, 2018 | 12:00 AM
Caribbean Producers going after business
in cruise sector
Caribbean Producers Jamaica, CPJ, described as the largest local provider of food and services to the hotel sector, wants to extend its reach into the cruise market and is negotiating supply agreements with various lines.
"It is part of our roll-out," said CEO Dr David Lowe, as he fielded questions following a presentation at the Monthly Mayberry Investors Forum on Wednesday. "It is an extension of what we do. It is also an underserved market - ports are being developed and the needs for how they do their provisioning is different. But we recognise the opportunity. We just have to see what makes business sense," he said.
Lowe declined to name the cruise lines that CPJ is wooing, but making a major splash in this sector would require inking deals with Royal Caribbean, Carnival Cruises, or MSC Cruises.
"We have been able to create opportunities for discussion at very senior levels, which is where that opportunity has now become a relevant topic for evaluation," he said.
CPJ is midway through a five-year restructuring plan, under which it reduced the stock keeping units it sells from about 4,800 items down to nearly 4,000 items. "But we made up for it," Lowe commented. The company is currently undergoing expansion that will grow its operating space to 210,000 square feet.
CPJ made net profit of US$1.18 million for its second quarter ending December 2017, or 8.2 per cent less net profit year-on-year. However, its revenues at US$29.5 million grew 18 per cent year-on-year.
Over six months, net profit totalled US$1.6 million on revenues of US$53.9 million. In the medium to long term, Dr Lowe remains upbeat about the growth prospects for the company. It is based on hotel growth in Jamaica and the region along with its investment in technology to manage its portfolio.