Blue Power’s Q3 Earnings Slip Down the Drain

Blue Power Group (BPOW) had nearly all its profits washed down the drain for the third quarter (Q3) ended January 31, 2026, as earnings plunged 96.6% year-over-year to $488.3K. The sharp decline reflects a combination of weak sales in lower-priced bath soap products and a build-up of foreign exchange losses, which weighed on finance income.
Q3 revenues amounted to $193.66Mn (-11.6%), as sales lost some lather during the quarter, particularly within certain value products in its bath soap product line. This segment has faced intense price competition from sporadic informal imports, which are squeezing both its direct sales and those of its distributors and brand owners.
Despite an improvement in direct cost (-13.8%), quarterly gross profit slipped by $4.78Mn (-7.5%), reflecting weaker sales volumes. At the same time, cost pressures continued to mount, as the company remains subject to a 40% duty on key raw materials under the CARICOM treaty framework. This rule, clarified by the Caribbean Court of Justice in 2024, has raised production costs and left BPOW fighting to stay competitive in the low-cost value soap category. The company is engaging CARICOM authorities for potential duty relief on raw materials. Despite this, gross profit margins improved to 30.3% from 28.9%, suggesting the company is still managing to squeeze some extra suds from its product mix.
Operating and administrative expenses rose modestly to $3.39Mn (+3.0%) as the company continued to support its operations and product portfolio while navigating slippery competitive pressure. Consequently, profit before finance income and taxation amounted to $7.49Mn, down 46.2% relative to the previous corresponding quarter, while operating margins thinned from 6.7% to 4.1%. Still, management indicated that immediate steps are being taken to improve operating efficiency in its low-cost product lines to restore competitiveness and protect margins.
Results were further dulled by an adverse swing in finance income, which shifted from $3.86Mn in Q3 2025 to a loss of $7.32Mn. This reversal was largely driven by foreign exchange losses on the company’s US-dollar cash balances and fixed-income investment portfolio, effectively rinsing out what would have otherwise been stronger operating gains.
Owing to a combination of weaker earnings from the start of the financial year, year to date earnings for the nine-month slipped to $46.5Mn (-54.1%), highlighting how both operating and financial pressures combined left BPOW struggling to keep profits from slipping down the drain.
Looking ahead, management remains optimistic about growth in higher-margin premium products, particularly natural and plant-based soaps, where increased sales have already partially offset weaker value-segment performance. The company also remains committed to its market-leading position in laundry bar soap, noting that a refreshed product review and innovation pipeline will be rolled out for this portfolio in the upcoming financial year.
BPOW's stock price has decreased by 9.3% since the start of the year to close at $3.72 on Thursday, March 12, 2026. At this price, it trades at a P/E of 21.88x, which is above the Junior Market Manufacturing Sector average of 21.7x.

(Sources: JSE & NCBCM Research)