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Revenues double at 'cake soap' company
By Alicia Roache Sunday Finance reporter roachea@jamaicaobserver.com
Sunday, March 13, 2011
The Blue Power Group has increased its profit for the three months ended January 31, 2011 by 91 per cent, $5.5 million more than the corresponding quarter of 2010, spurred by increased sales in its soap products.
For the quarter under review, soap sales were $54.5 million, a 100 per cent increase over the $27.2 million in sales from the prior year's corresponding quarter.
Chairman of Blue Power Group, Dhiru Tanna, and a co-worker inspect the product at the Blue Power soap (right) manufacturing plant in Kingston
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In a statement to shareholders, Dhiru Tanna, chairman of the Blue Power Group, the largest manufacturer of soap products in Jamaica noted the increase over previous quarters.
"The third quarter saw a continuation of the trend established in the previous quarter of increasing soap sales and decreasing hardware sales," said Tanna. "As the leading Jamaican manufacturer of laundry and toilet soaps, we are pleased that our products are gaining acceptance in the country," he added.
Net profit from the soap division, at $4.7 million, accounted for 40.4 per cent of the overall $11.5 million net profit for the Blue Power Group.
However, while there was an increase in the soaps division, sales declined in the lumber division by seven per cent or $10 million from $139.7 million in 2010, to $129.7 million in 2011. But with net profit in the lumber segment at $5.9 million, the division still accounted for 51 per cent of the Group's profits.
Blue Power Group listed on the Junior Stock Exchange (JSE) on April 22, 2010, thereby entitling the company to a 10 year corporate tax break, the first five of which no taxes are charged and 50 per cent of the effective tax charged for the last five years. No taxes were therefore deducted from the company's $11.5 million profit, which was $2.5 million more than the pre-tax profit of the corresponding period last year. However, assuming a constant tax rate, Blue Power would have seen a decline in profits for the quarter under review as taxes of $3 million in 2010 exceeded the difference in pre-tax profit for the 2011 quarter.
Blue Power Group will raise its selling prices following increasing raw material prices in the manufacturing division, Tanna said.
Read more: http://www.jamaicaobserver.com/busin...#ixzz1GUQUN9AS
By Alicia Roache Sunday Finance reporter roachea@jamaicaobserver.com
Sunday, March 13, 2011
The Blue Power Group has increased its profit for the three months ended January 31, 2011 by 91 per cent, $5.5 million more than the corresponding quarter of 2010, spurred by increased sales in its soap products.
For the quarter under review, soap sales were $54.5 million, a 100 per cent increase over the $27.2 million in sales from the prior year's corresponding quarter.
Chairman of Blue Power Group, Dhiru Tanna, and a co-worker inspect the product at the Blue Power soap (right) manufacturing plant in Kingston
1/1
In a statement to shareholders, Dhiru Tanna, chairman of the Blue Power Group, the largest manufacturer of soap products in Jamaica noted the increase over previous quarters.
"The third quarter saw a continuation of the trend established in the previous quarter of increasing soap sales and decreasing hardware sales," said Tanna. "As the leading Jamaican manufacturer of laundry and toilet soaps, we are pleased that our products are gaining acceptance in the country," he added.
Net profit from the soap division, at $4.7 million, accounted for 40.4 per cent of the overall $11.5 million net profit for the Blue Power Group.
However, while there was an increase in the soaps division, sales declined in the lumber division by seven per cent or $10 million from $139.7 million in 2010, to $129.7 million in 2011. But with net profit in the lumber segment at $5.9 million, the division still accounted for 51 per cent of the Group's profits.
Blue Power Group listed on the Junior Stock Exchange (JSE) on April 22, 2010, thereby entitling the company to a 10 year corporate tax break, the first five of which no taxes are charged and 50 per cent of the effective tax charged for the last five years. No taxes were therefore deducted from the company's $11.5 million profit, which was $2.5 million more than the pre-tax profit of the corresponding period last year. However, assuming a constant tax rate, Blue Power would have seen a decline in profits for the quarter under review as taxes of $3 million in 2010 exceeded the difference in pre-tax profit for the 2011 quarter.
Blue Power Group will raise its selling prices following increasing raw material prices in the manufacturing division, Tanna said.
Read more: http://www.jamaicaobserver.com/busin...#ixzz1GUQUN9AS
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