• For the quarter ended March 31, 2025 (Q1 2025), Edufocal Limited (LEARN) reported a significant reduction in net losses to $1.34Mn, from $20.87Mn in Q1 2024. The improvement stems from cost-control measures and strategic efforts aimed at restoring financial stability, despite continued pressure from high finance costs, which totalled $6.95Mn (down 16.1% year-over-year).
• Revenue held relatively steady at $29.97Mn, reflecting a marginal 0.13% decline from $30.01Mn in Q1 2024. This flat performance is consistent with the Group’s strategic focus on developing more predictable, recurring revenue streams, underpinned by continued investment in its Amigo platform, a key initiative aimed at building scalable income through a modernised business model.
• Amid the flat revenues, effective cost-containment strategies and the streamlining of operations improved operational performance. Notably, administrative expenses fell 62.3% to $12.88Mn, largely due to internal restructuring and heightened cost efficiency. As a result, operating profits totalled $5.61Mn, a sharp turnaround from the $12.59Mn operating loss in the prior year. Consequently, operating margin improved from -41.9% to 18.7%.
• However, impairment losses surged nine-fold to $11.25Mn largely due to provisions on trade and other receivables, including contract assets. This increase partially offsets the gains in operating performance and underscores lingering credit risks in the business. The company also contends with finance costs of $6.95Mn, which continue to weigh on performance.
• Amid the improved Q1 Performance, LEARN remains focused on expanding its global market presence through strategic initiatives, including the closure of ‘Academy’^[1] to streamline operations and the acquisition of Clever School Teacher (CST), EduFocal Nigeria and EduFocal Africa. These moves are part of a broader strategy to build a leaner, more globally competitive platform.
• The improvement in cost control and operating margins suggest progress toward recovery; however, trading in EduFocal’s shares remains suspended as the company has not yet submitted its audited financial statements for the year ending December 31, 2024. The Jamaica Stock Exchange suspended trading on June 2, 2025, and it is unlikely that Q1 2025 results alone will lead to a reinstatement without the overdue annual report.

(Sources: Company Financials & NCBCM Research)

^[1] EduFocal Academy is an online learning platform focused on providing educational support and resources to students, particularly those in grades 4-6, preparing for the Primary Exit Profile (PEP).

• Jamaica is participating in consultations on the implementation of various aspects of the CARICOM Single Market and Economy (CSME). The CSME was established to deepen regional integration, drive sustained economic development and build economic resilience within the Caribbean Community. Established under the Revised Treaty of Chaguaramas in 2001, the CSME seeks to create a single economic space allowing for the free movement of goods, services, capital, people, and the right of establishment.
• Speaking at a recent Jamaica Information Service (JIS) Think Tank, Minister of Foreign Affairs and Foreign Trade, Senator the Hon. Kamina Johnson Smith, emphasised the technical efforts required for the process.
• The CSME comprises several key components, including the free movement of goods that meet the rules of community origin without unauthorised barriers, the free movement of nationals across 12 categories without the need for work permits or visas and the right of CARICOM nationals to establish businesses in member states.
• Senator Johnson Smith explained that the economic aspects, such as financial and monetary integration among member states, are advanced through meetings of the Council for Finance and Planning (COFAP). Meanwhile, regional health and social matters are addressed by the Council for Human and Social Development (COHSOD), and legal matters are handled by the Senior Officials of the Legal Affairs Committee (SOLAC).
• At the last Heads of Government Conference, she said it was agreed that a three-year transitional period would be implemented to facilitate the necessary technical arrangements. “Jamaica will be a part of that,” she added.
• Minister Johnson Smith said that during the transition to free movement, existing mechanisms, such as the CARICOM Skills Certificate regime, will remain in effect. This means that individuals seeking employment in other member states will still need to apply for a CARICOM Skills Certificate. However, she noted that efforts are underway to streamline and enhance the process, making it easier and more efficient for people to move and work easily.

(Source: JIS)

• Brazil's central bank said on Tuesday that much of the impact from its "particularly quick and very firm" tightening cycle is yet to be felt, which is why it now foresees a pause in interest rate increases to assess those effects.
• In the minutes of last week's decision, when the monetary policy committee Copom raised rates by 25 basis points to 15.0% and signalled a "very prolonged" pause ahead. The central bank also stressed that it will still assess whether the current rate is appropriate to bring inflation back to target.
• Reiterating that it will not hesitate to resume hikes if needed, the central bank sought to stress that the pause does not necessarily mark the end of the tightening cycle, a message likely aimed at discouraging premature bets on when it might start easing borrowing costs.
• Despite the aggressive tightening, Latin America's largest economy has continued to outperform expectations, supported by resilient economic activity and a tight labour market, with annual inflation running well above the 3.0.% target.
• "How do you stop raising interest rates in a scenario like this? By trusting the lags of monetary policy. ... So now it's time to wait for it to take effect," said Luis Otavio Leal, partner and chief economist at G5 Partners, who expects an initial rate cut early next year.

(Source: Reuters)

• Mexico's headline inflation landed in line with expectations in the first half of June, reinforcing analysts' expectations that the central bank should continue to steadily bring down interest rates in Latin America's second-largest economy.
• Mexican consumer prices rose 0.10% during the first half of June compared to the prior two weeks, data from the national statistics agency showed on Tuesday, in line with the 0.11% projected by economists in a Reuters poll.
• Inflation in the 12 months through mid-June meanwhile hit 4.51%, also in line with expectations, an increase compared with 4.22% the prior month but easing from the 4.62% registered in the second half of May.
• Analysts at Banamex said they expect inflation to "resume a downward trajectory in the coming months." A rebound in merchandise prices from low levels last year should continue "albeit at a slower pace, considering the stability of the exchange rate and the moderation in producer price inflation," it added.
• The increase moves the inflation figure further from the Bank of Mexico's target range of 3%, plus or minus 1 percentage point.
• The central bank cut its benchmark interest rate by 50 basis points in May - its third consecutive cut of that size - bringing it down to its lowest point since August 2022, at 8.5%.
• Analysts polled by Reuters expect the bank to announce another cut of 50 basis points later this week. Analysts at Mexican Financial Services group, Actinver, said they expect that the decision to split the board, and that future cuts will likely be just 25 basis points.

(Source: Reuters)

• Britain's recent increase in inflation could prove to be a longer-lasting plateau rather than a short-term hump, and the Bank of England should be careful about reducing interest rates, BoE monetary policymaker Megan Greene highlighted.
• British consumer price inflation was 3.4% in May - well above its 2% target - and the BoE last week forecast it would rise to 3.7% by September and remain around 3.5% for the rest of the year.
• Greene, who voted to keep borrowing costs on hold at the most recent meeting of the BoE's Monetary Policy Committee, said conflicting signals from economic data meant she was in no hurry to resume voting for rate cuts.
• "Noisy data means that it will take longer for me to take comfort from recent disinflationary trends," she said. "Given the period of elevated inflation through which we have just come, I think price stability is the key priority." Greene said the BoE's message that it would take a "careful and gradual approach" to cutting rates was still warranted.
• The BoE wants banks to make greater use of its weekly repos for seven-day and six-month funds, and Greene highlighted the possibility for commercial banks to profit from differences between the BoE's and other central banks' reserve systems. "Financial arbitrage opportunities present incentives for banks to participate in our facilities, enhancing rather than undermining our ability to maintain rate control. This is a feature, not a bug," she noted.
• The scale of these opportunities was "fairly limited", she added. Asked what this meant in cash terms - and whether it represented an extra cost for the BoE - Greene said she could not give details and that her focus as an MPC member was on the effective transmission of BoE rate changes to financial markets.

(Source: Reuters)

• Some Bank of Japan (BoJ) policymakers called for keeping interest rates steady for the time being due to uncertainty over the impact of U.S. tariffs on Japan's economy, a summary of opinions at the bank's June policy meeting.
• Others in the nine-member board said inflation was moving at higher-than-expected levels, with one saying the BoJ may need to raise interest rates "decisively" at some point, even if economic uncertainty remained high, the summary showed.
• At the June 16-17 meeting, the BpJ kept interest rates steady at 0.5% and decided to decelerate the pace of its balance sheet drawdown next year, signalling its preference to move cautiously in removing remnants of its massive stimulus.
• "Given high uncertainty, the BoJ should maintain accommodative financial conditions by keeping interest rates steady to support the economy," one member highlighted.
• Several opinions warned of the expected hit to Japan's fragile economy from sweeping U.S. tariffs
• Meanwhile, others saw rising inflationary pressure in Japan, driven in part by surging prices of the country's staple rice, with some saying consumer inflation was accelerating more than expected.

(Source: Reuters)

• Driven by reduced services exports and increased demand for imports by Jamaican consumers and businesses, Jamaica’s current account surplus is expected to narrow from 3.3% of GDP in 2024 to 1.6% of GDP in 2025, according to Fitch Solutions. However, despite these headwinds, Jamaica’s expected surplus in 2025 will mark the third consecutive year of a current account surplus, reflecting the continued relative strength of Jamaica’s tourism sector, strong reported bauxite production and exports, and resilient remittance inflows.
• While Fitch expects some softening of remittances in 2025 due to a sluggish United States (U.S.) growth outlook, inflows have remained resilient in the first quarter of 2025 (Q1 2025), supporting Jamaica’s large secondary income account surplus, which accounted for 16.8% of GDP in 2024, and is projected at 15.5% of GDP in 2025. According to the most recent data available (Jan.-Feb. 2025) net remittances have increased by 2.9% relative to the previous period in 2024.
• In line with the declining levels of inbound tourism expected in 2025; Jamaica’s services exports are expected to fall from 25.8% of GDP in 2024 to 24.0% in 2025. However, given the reported strength in bauxite production and exports, goods exports will see marginal increases, from 9.2% of GDP in 2024 to 9.8% of GDP in 2025, supporting Jamaica’s trade balance. Additionally, with oil and energy accounting for almost 20% of total imports in 2024, forecasted decreases in oil prices will positively impact Jamaica’s terms of trade and overall trade balance.
• Mirroring the current account surplus in 2024, Jamaica’s financial account showed net financial outflows, driven by outbound portfolio investment, other investment, and the accumulation of foreign reserve assets. However, FDI inflows in 2024 fell well short of the levels seen in 2023, declining 57% y-o-y, with 2025 unlikely to see a rebound, due to dampened external demand and increased economic uncertainty from U.S. trade policy.
• That being said, risks are tilted to the downside, with sharper-than-expected reductions in remittances and inbound tourism potentially narrowing the current account by a greater degree than anticipated. A continued softening of external growth and economic activity in the U.S. also presents a significant downside risk to the outlook, with decreased demand for Jamaican goods and services exports a headwind to growth, net exports, and the current account surplus.
• In terms of the current Middle East Conflict, higher oil prices could dampen trade and growth prospects, which would negatively impact Jamaica’s trade balance. However, the ceasefire between Israel and Iran and the de-escalation of the conflict, in turn, saw a collapse in oil prices, with Brent Crude trading back around US$69 per barrel (/bbl), and Fitch believes oil prices will remain in the range of US$70–80/bbl.
• That said, the outlook is mixed and is heavily dependent on the event of a re-escalation in tensions. Any sustained move above US$90/bbl would begin to weigh on global activity, while for a surge to US$120–150/bbl, global inflation could rise by 1.2–1.8 percentage points (pp) and global growth could be reduced by at least 0.2–0.3pp, likely tipping the global economy into a mild recession.

(Source: Fitch Connect)

• On June 20, 2024, Tropical Battery Company Limited (TROPICAL) advised that, following requests from several institutional and other prospective investors for additional time to complete their internal investment processes, the Company has elected to extend the Closing Date of its Additional Public Offering (APO).
• After consulting with its lead brokers, NCB Capital Markets Limited and Sagicor Investments Jamaica Limited, TROPICAL has approved a further extension of the APO Closing Date from Friday, June 20, 2025, to on or before Friday, July 4, 2025, at 4:30 PM.
• This extension underscores TROPICAL’s commitment to enabling broad-based investor access and ensuring that all interested parties have adequate time to participate in this significant capital-raising initiative.
• Tropical is seeking to raise capital through an APO. The company is offering 954.54Mn new ordinary shares, with the possibility of increasing the offering by an additional 168.44Mn shares, for a maximum total offer size of 1.12Bn new ordinary shares. The APO price is J$1.87 per share.
• At market close on Monday, Tropical’s stock price was J$2.03, down 23.64% since the start of the year, and 8.56% above its APO offer price. At its current price, the company trades at a trailing P/B of 2.76x, below the 3.75x average for the Junior Market Distribution Sector.

(Sources: JSE and NCBCM Research)

• The Bahamas Ministry of Tourism is making a strong push in Canada this summer, hosting key trade and media events in Montreal and Toronto to deepen partnerships and capitalise on growing interest from Canadian travellers seeking fresh, accessible, and authentic vacation options beyond traditional markets.
• Leading the mission, Deputy Prime Minister and Minister of Tourism, Investments & Aviation, the Honourable I. Chester Cooper, will spearhead high-level engagements with airline partners, tour operators, travel advisors, and media. The delegation also includes Director General Latia Duncombe and other senior tourism officials.
• Central to this growth strategy is the Ministry’s success in expanding air connectivity with Canada. Earlier this year, the Ministry announced significant boosts in flights from major Canadian cities to The Bahamas.
• Minister Cooper explained that “Canadian travellers are changing their travel habits, and with expanded airlift and improved accessibility, The Bahamas is well-positioned to capture this demand. This mission is focused on growing our visitor numbers and strengthening partnerships that deliver real economic benefits for our tourism industry.” He further explained that “Airline partners like Air Canada and Sunwing are responding to strong Canadian demand with expanded services. These improvements in accessibility directly enhance our ability to grow tourism business, bring new visitors, and create economic opportunities across The Bahamas.”
• New nonstop services from Ottawa and Halifax to Nassau will launch this winter, while existing routes from Toronto and Montreal to Nassau and Grand Bahama have been extended or made year-round. These increased flight options make The Bahamas more accessible than ever, supporting year-round travel to 16 unique island destinations.

(Source: Eyewitness News)

• Iran launched a missile attack on an American air base in Qatar on Monday that caused no injuries, and U.S. President Donald Trump dismissed it as a "weak response" to U.S. attacks while urging Iran and Israel to make peace after 11 days of mutual hostilities.
• The attack on Al Udeid Air Base in neighbouring Qatar threatened to widen a conflict that began on June 13 with an Israeli strike on Iran targeting its nuclear programme and ballistic missiles. Iran had threatened to retaliate against the United States after U.S. bombers dropped 30,000-pound bunker-busters on Iranian underground nuclear facilities over the weekend, joining Israel's air war against Iran, and Trump had raised the possibility of the Iranian government being toppled.
• Iran gave advance notice to the U.S. via diplomatic channels hours ahead of the attack, as well as to Qatari authorities. Trump seized on that as a positive sign. "I want to thank Iran for giving us early notice, which made it possible for no lives to be lost, and nobody to be injured," Trump wrote on his Truth Social media site. "Perhaps Iran can now proceed to Peace and Harmony in the Region, and I will enthusiastically encourage Israel to do the same."
• The attack strained Iran's relationship with its Arab neighbours, Qatar condemned it, as did Bahrain, the United Arab Emirates, Saudi Arabia, Kuwait, and Iraq.

(Source: Reuters)