Blue Power Group Limited (BPOW) invested more than $124.5 million to expand its soap-making plant and machinery during the first quarter of this year. During this period, they also acquired another competitor in order to utilize the resources that come with such a purchase.
“As part of this project, Blue Power acquired plant and equipment from a local player who elected to consolidate production in Jamaica at Blue Power. This also allowed Blue Power to upgrade and modernize its production line,” the company’s Chairman Jeffrey Hall said to the Financial Gleaner.
He also went on to state that he expected the company to grow in 2023 despite the current challenges that loom over the business.
“There will be continued challenges, but we expect our plan to show improved revenues in the first half of 2023 and improved operating results by the end of the 2023 financial year,” said Hall.
One of these challenges has been the Ukraine war which has affected core supplies such as vegetable oils, which are used in the production of soap.
This in turn led to further increases and ultimately, to export restrictions being placed on countries in Asia that traditionally supplied raw materials to Blue Power. The markets were ‘forced’ to divert volumes to supply their home markets.
During the financial year, the company generated $526 million in sales, which is a bit lower than the $534 million it made a year earlier. Profit came in at $194 million, which is mainly attributed to the sale of its retail and warehouse store at Papine, St Andrew which was purchased by Lumber Depot Limited (LUMBER) for approximately $145.6 million.
