• Fosrich Company Limited (FOSRICH) posted a 101.8% decline in net profit attributable to shareholders, swinging to a loss of J$244.05Mn for Q3 2025, as revenues contracted sharply owing to disruption in supplies of both finished goods and raw materials.
• Total revenue fell 22.5% to J$832.0Mn (Q3 2024: J$1.07Bn), reflecting the continued impact of international shipping delays that have disrupted supplies of both finished goods and raw materials. The shortage of key inputs limited Fosrich’s manufacturing output, reducing its ability to meet market demand and contributing to a run-off in inventory balances.
• In addition to the supply slowdown, turnover was further pressured by the sharp decline in global solar panel prices. Therefore, despite achieving higher sales volumes, because price reductions are passed on to customers, the company reported lower total sales income across this critical product line.
• Direct costs declined 4.3% to J$600.9Mn, a slower rate than the revenue contraction, resulting in gross profit margin compression to 27.8% (Q3 2024: 41.6%). The margin erosion reflected both the lower sales volumes and a less favourable product mix.
• Operating expenses rose 1.3% YoY to J$337.3Mn. Against this background, the company reported an operating loss of J$113.89Mn, only a modest improvement from the J$117.49Mn loss recorded in Q3 2024.
• Fosrich’s weak Q3 results compounded its year-to-date performance, with a net loss of J$433.62Mn for the 9M 2025 period, compared to a J$82.32Mn profit a year earlier. Over the nine months, the company faced sustained supply chain disruptions and in the absence of an offsetting reduction in operating expenses, the company reported losses. Although staff costs were relatively flat, increases in audit fees, depreciation, rent, and security expenses, partly linked to the opening of two new branches at Bayside in Montego Bay and Drax Hall in St. Ann and other expansion activities kept expenses elevated.
• Looking ahead, demand for electrical supplies and solar equipment could improve as post–Hurricane Melissa reconstruction activity picks up, though lingering shipping delays related to solar equipment may constrain the pace of recovery in the short term. Management noted that, with “recent developments in the USA market, our global partners, in seeking to broaden and deepen their relationships with their non-USA customers, have offered more favourable credit terms to us,” which the company expects will yield measurable benefits going forward.
• At the market close on Tuesday, Fosrich’s stock price was J$2.17, down 25.9% since the start of the year. At this price, Fosrich trades at a P/B of 7.04x, which is above 4.02x for the Junior Market Distribution average.

(Sources: FOSRICH, NCBCM Research)

• Lasco Distributors Limited (LASD) posted a 33.3% decline in total comprehensive income to J$408.2Mn for Q2 2025, as rising costs outpaced revenue gains. The earnings dip reflected mounting cost pressures despite broad-based revenue growth across key divisions.
• Total revenue rose 6.5% year over year to J$8.13Bn, reversing the 0.8% contraction in Q1. Growth was supported by improved performance across all major divisions, with the Export Division up 19.5% YoY, buoyed by new distribution partnerships with a leading North American retailer. The Nutrition, Food & Beverage, Home Care, and Healthcare categories also delivered solid growth, underscoring healthy domestic and export demand.
• However, with direct cost (+8.0%) outpacing revenue growth, this led to a 0.9% decline in gross profit to J$1.34Bn. Consequently, the gross profit margin slipped to 16.4% from 17.6% in the prior year. gross profit declined (-0.9%) to J$ 1.34Mn. Management noted that direct costs are expected to moderate in the second half of the year as storage costs normalise and the expanded warehouse becomes fully operational.
• Operating expenses climbed 5.7% YoY, driven by higher sales and promotional activities, staff-related expenses, and technology investments. As a result, operating profit declined 19.0%, pushing the operating margin down to 4.4% from 5.8% a year earlier. Financing costs surged 587.4% to J$9.47Mn, amplifying profit decline. The combined effect of weaker margins and higher financing costs due to additional debt reduced net margins to 3.1% from 4.9%.
• For the six-month period, earnings fell 24.5% YoY, extending the decline from Q1 (–18.8%) and underscoring continued strain on margins.
• While the near-term performance remains pressured, management’s focus on cost containment and improved storage efficiency could support better margins in the latter half of the fiscal year. The company is nearing the completion of certain transformational initiatives covering its infrastructure, systems and portfolio which will improve its operational efficiencies, leveraging the investments made in the first half of the year and positioning the core portfolio for continuous improvement. The diversification strategy is expected to continue to deliver solid results, with exports benefiting from expanded distribution and the pharmaceutical division's enhanced distribution agreement framework providing further growth potential.
• Additionally, LASD is expected to participate meaningfully to the extent that their distributions remain uninterrupted. Demand for consumer staples tends to rise following natural disasters as households replace spoiled or lost goods, communities restock, and relief agencies coordinate centralised purchases.
• At the market close on Tuesday, LASD’s stock price was J$3.52, down 11.7% since the start of the year. At this price, LASD trades at a P/E of 10.4x, which is above 17.9x for the Main Market Distribution & Manufacturing average.

(Sources: LASD, NCBCM Research)

• The average daily spending of tourists visiting the country has consistently decreased so far this year, going from US$176.67 in the first quarter of 2025 to US$164.83 in the third. According to data from the Central Bank, daily spending in July, August, and September fell below the 2024 average, which stood at US$167.75.
• In the first nine months of this year, the country received a total of 6,575,073 non-resident visitors, 2.3% more than in the same period in 2024, with an estimated average daily expenditure of US$170.17 and a stay of eight nights.
• Between January and September, the average occupancy rate was 75.6%, with Bayahibe-Romana having the highest occupancy at 83.1%, followed by Punta Cana at 82.2%.
• August and September were the months with the lowest occupancy at most of the country’s tourist destinations; however, the reduction was minimal in Bayahibe and Punta Cana, while it was significant in Sosúa-Cabarete and Puerto Plata (Playa Dorada, Costa Dorada, and Cofresí).
• Meanwhile, 86.2% of tourists who visited the country between January and September of this year indicated that recreation was the main reason for their visit. Furthermore, hotels were the predominant accommodation option for 80.2% of visitors.
• Regarding age, 50.1% of visitors were between 21 and 49 years old, 51.7% were women, and 48.3% were men, according to Listín Diario newspaper.

(Source: Dominican Today)

• Mexico's annual inflation decelerated in October, official data showed on Friday, staying within the central bank's target range, although analysts remained cautious about the path ahead.
• Consumer prices in Mexico rose 3.57% in the year through October, according to the national statistics agency INEGI, down from 3.76% the previous month and roughly in line with economists' forecasts in a Reuters poll that pointed to a 3.56% increase. Despite the inflation rate remaining within the central bank's target range of 3%, plus or minus a percentage point, for the fourth month in a row, analysts and policymakers have adopted a cautious tone.
• "We anticipate a rebound in annual inflation in early 2026 as a result of the effects of tax increases," economists at Banamex said in a note. For next year, Gabriel Casillas, Barclays head of LatAm Economics Research, particularly mentioned the expected tax increase on soft drinks, the imposition of tariffs on imports from non-FTA countries and the awaited 12% minimum wage increase, as the most relevant issues hitting inflation.
• Mexico's central bank, also known as Banxico, lowered borrowing costs on Thursday for the fourth consecutive time, reducing its benchmark rate by 25 basis points to 7.25%, its lowest level since May 2022. The closely watched core index, which strips out some volatile food and energy prices, increased 0.29% every month, compared with expectations of a 0.28% increase.
• Together with concerns about core inflation, the bank's policymakers cited the ongoing weakness in Mexico's economy. Banxico's governor, Victoria Rodriguez, told Imagen radio late Thursday that she expects the economy to maintain moderate growth, with persisting slack conditions. The governor, who voted in favour of the latest rate cut, noted that the bank's quarterly report due at the end of November will update its gross domestic product and inflation forecasts.

(Source: Reuters)

• U.S. central bankers who have supported two interest rate cuts this year signalled on Monday divergent views on the need for more, underscoring the challenge for Federal Reserve Chair Jerome Powell as he helms a divided group of policymakers. St. Louis Fed President Alberto Musalem was downright skeptical about the prospect of further monetary easing.
• "It's very important that we tread with caution here: I think there is limited room to ease policy further without policy becoming overly accommodative," he told Bloomberg Television. Inflation, he noted, is closer to 3% than the Fed's 2% target.  He added that financial conditions including stock valuations and house prices are elevated; monetary policy is nearer to neutral than to modestly restrictive; and the labour market has cooled in an orderly manner.
• Signalling a bit more openness to a rate cut was San Francisco Fed President Mary Daly, who said muted wage growth shows demand for labour is cooling, and at the same time tariffs have not lifted inflation in any broad-based or persistent way. Daly said she is on the alert for the possibility that a rise in productivity from the adoption of artificial intelligence could allow for faster economic growth without pressuring inflation. "While I'm looking for productivity gains and seeing if they're going to continue, I'm also keeping my eye completely focused on inflation to make sure that it doesn't pick up in a way that would suggest we need to do more or we need to hold longer," Daly told Bloomberg Television. At the same time, she said, "we don't want to make the mistake of holding on too long for rates, only to find out we injured the economy."
• Fed Governor Stephen Miran, who dissented in October in favour of a bigger rate cut, feels the evidence is already in, with quickly falling inflation and a softening labour market making further policy easing "imperative."

(Source: Reuters)

• Chinese exports unexpectedly fell in October after months of front-loading U.S. orders to beat President Donald Trump's tariffs, in a stark reminder of the manufacturing juggernaut's reliance on American consumers, even as it woos buyers elsewhere.
• The world's second-largest economy has pushed hard to diversify its export markets since Trump won last November's presidential election, bracing for a resumption of the trade war that dominated his first term in office, and seeking closer trade ties with Southeast Asia and the European Union. "It appears the rush to ship goods to the U.S. ahead of tariff hikes subsided in October," said Zhang Zhiwei, chief economist at Baoyin Capital Management. "With export momentum now waning, China may need to rely more heavily on domestic demand."
• Chinese shipments to the U.S. tumbled 25.17% year-on-year, the data showed, while those to the European Union and Southeast Asian economies - big trading partners with whom policymakers have sought to bolster ties amid tariff tensions with Washington - grew by just 0.9% and 11.0%, respectively.
• Most analysts largely agree that Chinese manufacturers have pushed as many goods into the world as possible for now.
• "I think the PMI was already warning us that Chinese exports cannot continue to grow forever, and it's not only because of the U.S. but because the global economy is slowing," said Alicia Garcia-Herrero, chief economist for the Asia-Pacific at Natixis.
• "Exports through Vietnam to the U.S. will decelerate once the front-loading is over, and we're there. So, I think it's going to be much tougher for China in the fourth quarter, which means it's going to be tougher in the first half of 2026 as well," she added

(Source: Reuters)

• Jamaica's hospitality sector is facing an uneven recovery following Hurricane Melissa, with some resorts already welcoming back guests while others in harder-hit regions face lengthy reopening timelines. Properties in the Montego Bay area were hit much harder by the hurricane's October 28, 2025, landfall than those in Ocho Rios and Negril.
• "Jamaica is a large and diverse island, and each region has experienced the storm differently," said Adam Stewart, executive chairman of Sandals Resorts International, which has eight resorts across the island. Five of the group's resorts in Negril and Ocho Rios will reopen on December 6: the Sandals Dunn's River, Sandals Ocho Rios, Sandals Royal Plantation, Sandals Negril and Beaches Negril. Sandals said that some of those resorts could theoretically open sooner. Stewart said the Ocho Rios properties were "largely unaffected by the most severe impacts", but that the company set the December date "to offer a period of rest and recovery for our local team members in Jamaica."
• That isn't the case for the company's properties in Montego Bay and White House. The Sandals Montego Bay, Sandals Royal Caribbean and Sandals South Coast resorts are not set to reopen until May 30, 2026. Likewise, Hyatt's Inclusive Collection has suspended operations and new bookings at its eight Montego Bay-area properties through January. Salamander Collection's Half Moon resort, also in Montego Bay, aims to reopen on December 15, citing impacts to local infrastructure as a factor in its timeline.
• In support of the islandwide recovery effort, Jamaica's Ministry of Tourism has activated a Hurricane Melissa Recovery Task Force, with Minister of Tourism Edmund Bartlett setting a December 15 target date for Jamaica's tourism industry to be fully operational.
• Among those appointed to serve on the task force is Sandals' Stewart, who emphasised that returning visitors will play a key role in Jamaica's comeback. "Tourism is a vital part of Jamaica's national recovery, and guests can feel confident that the best way to support the region is by visiting and returning to the island they love," Stewart said.
• The late-October timing of Hurricane Melissa adds to the island's challenges, as many closures are expected to stretch over the crucial holiday season. "That's peak season, and they're losing out on it," said Michael Cummings, CBRE's (an initialism of Coldwell Banker Richard Ellis’) managing director for valuation and advisory services. "It's going to be a while before Jamaica recovers." Furthermore, Cummings added that immediate humanitarian needs will continue to take precedence over resort operations.

(Sources: Travel Weekly)

• In a press release on the Jamaica Stock Exchange (JSE) on November 6, 2025, General Accident Insurance Company (Jamaica) Limited (GENAC), through its parent company, Musson (Jamaica) Limited (Musson), has purchased 100% of Beacon Insurance Company Limited (Beacon) effective October 31, 2025. Beacon will subsequently become a subsidiary of General Accident, subject to additional regulatory approvals.
• Beacon specialises in general insurance, underwriting for both individual and institutional clients, and offers a broad product range comprised of Property, Motor, Accident and Casualty, Marine Cargo and Hull, Bonds, and Engineering insurance. It is the fourth largest general insurer in Trinidad and Tobago by gross written premiums, trailing Guardian General Insurance Limited, Trinidad & Tobago Insurance Limited (TATIL), and Colonial Fire & General Insurance Limited (COLFIRE). The company has a regional presence through its Barbados, Grenada and Saint Lucia offices, and agency operations located in Dominica, Saint Kitts and Nevis, and Saint Vincent and the Grenadines.
• The acquisition is set to greatly expand General Accident’s presence in Trinidad and Barbados and allow it to enter new markets in Dominica, Grenada, St. Kitts, St. Lucia and St. Vincent. General Accident’s gross written premiums are now projected to be in excess of J$32Bn annually, up from J$23Bn in FY2024.
• That said, Beacon is set to continue to operate as an independent subsidiary of General Accident, and the combined company intends to maintain both the Beacon and General Accident brands in Trinidad and Barbados.
• Additionally, Beacon will continue to be managed by its existing executive team led by Chief Executive Officer Christopher Woodhams. Mr Woodhams will report directly to Sharon Donaldson, Group Chief Executive Officer of General Accident, and oversee Beacon and General Accident’s combined business in Trinidad.
• General Accident Chairman PB Scott said, “We have long admired Beacon as an outstanding, well-managed insurance company. We are privileged to now have the opportunity to work with its talented leadership team, combine Beacon with our own business and create a powerful platform across the Caribbean. I’m excited about our ability to join forces with [the] Beacon team to better serve our people and our clients at both General Accident and Beacon.”
• With Hurricane Melissa posing short-term headwinds for General Accident and other local insurance companies, owing to likely higher insurance claims, the potential geographical diversification and growth provided by the Beacon acquisition could be accretive for long-term investors. However, this will depend on the realisation of post-merger synergies, effective integration and management, and the financial structure of the deal.
• At market close on Thursday, GENAC’s price was J$5.56, down 10.03% since the start of the year. At its current price, the company trades at a P/E of 9.11x, which is below the Main Market Financial Sector average of 11.51x.

(Source: JSE, NCBCM Research)

• Caribbean Information and Credit Rating Services Limited (CariCRIS) has reaffirmed the Issuer/Sovereign Credit Ratings assigned to the Government of Saint Lucia (GOSL or the Country) at CariBBB- (Foreign and Local Currency Ratings) on the regional rating scale for several rated debt issues of the country.
• These ratings indicate that the level of creditworthiness of this obligor, adjudged in relation to other obligors in the Caribbean, is adequate.
• CariCRIS has also maintained a stable outlook given that the country’s is expected to see modest real GDP growth over the next three years and its Debt-to-GDP, currently above 70%, is not expected to increase significantly. Alongside GDP growth, planned surpluses should help reduce indebtedness to 60% by 2035. Financial system metrics remain strong, and international reserves have improved from 2.9 months of import cover in 2022 to 4.4 months in 2024 due to recovering tourism earnings.
• The ratings are driven by monetary and exchange rate stability due to a quasi-currency board arrangement, a sound financial sector characterised by high but declining NPL ratios and wide economic activity, albeit dependent on tourism.
• The rating strengths are tempered by the projected debt-to-GDP ratio, which is expected to remain above 60%, necessitating fiscal consolidation and sustained GDP growth. It also considered high unemployment, particularly among youth, and rising crime, which can lead to political upheaval and disrupt fiscal and investment planning..
• Factors that could, individually or collectively, lead to an improvement in the Ratings and/or Outlook include debt-to-GDP below 65%, a balanced budget, and sustained 5% annual GDP growth. Conversely, a fiscal deficit above 15% of GDP or debt-to-GDP exceeding 90% alongside weaker debt servicing capacity could, individually or collectively, lead to a lower rating and/or Outlook.

(Source: CariCris)

• Chevron and Petronas have secured offshore exploration rights to Blocks 9 and 10 off the coast of Suriname, signalling growing international confidence in the country's upstream potential and its emergence as a Caribbean energy frontier. The agreements bring leading global operators into the Suriname Guyana basin and pave the way for accelerated exploration and investment, particularly as state-owned energy company Staatsolie prepares to launch a licensing round for additional offshore acreage later this month.
• Under the agreements, Block 9 will be operated by Petronas Suriname E&P B.V. (30%), with Chevron (20%), QatarEnergy (20%) and Paradise Oil Company (POC) (30%) as partners. Block 10 is led by Chevron (30%), alongside Petronas (30%), QatarEnergy (30%) and POC (10%). The initial three-year exploration phase will focus on 3D seismic surveys and subsurface mapping ahead of potential drilling.
• The awards reinforce Suriname's ongoing strategy to develop its offshore sector. Building on previous deals, such as the June 2025 PSC signed with Petronas for Block66, which includes plans for two exploration wells, the country is attracting top-tier international operators to its basins. By positioning Blocks 9 and 10 near proven deepwater discoveries and onshore producing fields in the Suriname Guyana basin, Suriname strengthens the likelihood of commercial success while reducing perception risk for other investors.
• The deals underscore the Caribbean margin as a growing hotspot for upstream investment. Neighbouring Guyana's offshore success has already drawn global attention, and Suriname's new agreements reinforce investor confidence in the region.

• The signing of Blocks 9 and 10 represents more than exploration activity, which signals investor confidence in Suriname's regulatory framework, strategic vision and growing role in the global energy market. With additional licensing opportunities imminent, Suriname is poised to attract further international investment and solidify its standing for the fifth successive year of expansion in the non-oil economy at the half-year, following the contraction in 2020.

(Sources: Energy Capital Power)