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The financial situation at the Jamaica Producers Group has worsened with the company reporting more than half a billion dollars in losses.
There is also more bad news for shareholders.
The company said based on the nature of its losses, an immediate turnaround is unlikely, even as it undertakes key initiatives.
For the six month period ended June 14, Jamaica Producers suffered a $634 million loss.
This was a deterioration from the $90 million loss reported during the corresponding period last year.
Revenues also declined by $550 million to $5.8 billion for the six months.
UK deals not helping
Jamaica Producers said it continues to experience significant losses under its contracts to blend and bottle fruit juice for supply to UK supermarkets.
These medium-term contracts require the company to maintain fixed selling prices.
Jamaica Producers said unprecedented increases in raw material and energy costs have reduced gross margins and rendered many of these contracts uneconomic.
The losses are compounded by the ongoing cost of redeveloping its banana business as well as snack food and shipping operations after Hurricane Dean last year.
Year-to-date sales were lower when compared to the corresponding period last year primarily because the company has not yet resumed exports from Jamaican farms.
There is also more bad news for shareholders.
The company said based on the nature of its losses, an immediate turnaround is unlikely, even as it undertakes key initiatives.
For the six month period ended June 14, Jamaica Producers suffered a $634 million loss.
This was a deterioration from the $90 million loss reported during the corresponding period last year.
Revenues also declined by $550 million to $5.8 billion for the six months.
UK deals not helping
Jamaica Producers said it continues to experience significant losses under its contracts to blend and bottle fruit juice for supply to UK supermarkets.
These medium-term contracts require the company to maintain fixed selling prices.
Jamaica Producers said unprecedented increases in raw material and energy costs have reduced gross margins and rendered many of these contracts uneconomic.
The losses are compounded by the ongoing cost of redeveloping its banana business as well as snack food and shipping operations after Hurricane Dean last year.
Year-to-date sales were lower when compared to the corresponding period last year primarily because the company has not yet resumed exports from Jamaican farms.