Berger Paints profits up - 'The best ever in its 48-year history' Berger Paints Jamaica's net profit increased by 11 per cent in 2000 over 1999, rising to some $64.07 million. Profit before tax amounted to $98.5 million in the year under review, compared with $84.9 million in 1999. Income tax of $34.4 million took a big chunk of the profits. Sales, net of discounts and rebates, showed a 5 per cent movement upward from $726 million in 1999 to $764 million in 2000. Profit from operations increased from $87 million in 1999 to $99 million in 2000 while finance costs were slashed from $1.8 million in 1999 to $759,000 in 2000. The performance in the review period, according to Berger Managing Director, Warren McDonald, was "the best ever in its 48-year history. At the same time, Berger Jamaica has improved its operational deficiencies, strengthened its competitive position in the marketplace and increased its overall market share by approximately 1 per cent." Mr. McDonald said, "In a year which was characterised by a 9.9 per cent devaluation of the Jamaican dollar, continued high interest rates on loans, averaging 33 per cent per annum, and stagnation in the manufacturing and construction sectors, the company recorded an all-time high in sales and production volumes." The company's profitability was also reflected in profit after tax as a percentage of shareholders' funds, which stood at 20 per cent for the year 2000. This has facilitated an 18. 2 per cent increase in the gross dividend to shareholders which has moved from $27.49 million in 1996 to a record $37.15 million in 2000. Earnings per stock unit increased from 33 cents in 1996 to 45 cents in 2000 (1999: 40 cents). Berger's productivity measure, which is determined by the number of litres produced per man-hour, increased by 5.2 per cent, breaking the record which was established in the previous year. At the same time, customer satisfaction levels showed improvement during the year, averaging well in excess of 85 per cent. Its acquisition of a fully computerised 19 litre (5 gallon) filling line was brought in to service in late 2000 and, according to the managing director, is already to improve operational efficiencies." Production capabilities are expected to be further enhanced with the installation of a new twin-head filling line by the second quarter of the 2001 financial year. The adaptability of the new equipment, which has the capacity to fill a range of containers, including .95 litre (1 quart), 3.8 litre (1 gallon), 19 litre (5 gallon), as well as rectangular-shaped vessels is expected to improve efficiency as well. Berger made significant inroads into two major market segments during 2000. The brand was used in the refurbishing of Port Bustamante and Berger won the supply contract for the 396 room resort being constructed at Bloody Bay, Negril by the Riu Hotel Group. The Standox brand of automotive finishes continued to make gains in the marketplace, recording 80 per cent volume growth. In the area of product development, they launched in November 2000, the technologically advanced gloss emulsion finish called Berger 2020. Berger Paints Jamaica Limited won the inaugural award presented by the chairman of Berger International Limited (BIL) to the Best Operating Company in the BIL Group, which comprises 25 companies in 14 countries around the world. The award was made in respect of Berger Jamaica's performance in the 1999 financial year.
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