Earnings Brewing! JAMT Pours Stronger Q2 Results as Losses Cool

  • Jamaican Teas Limited (JAMT) reported improved profitability for the second quarter ended March 31, 2026 (Q2 2026), as stronger revenues and reduced investment losses supported an earnings rebound. Net profit rose to $26.16Mn from the net loss of $74.49Mn in Q2 2025.
  • Revenue performance remained solid, supported by broad-based expansion across the company’s core business segments. Total revenues increased by 21.5% to $1.00Bn. Manufacturing revenues (17.0%) was driven largely by strong domestic demand. Export sales also improved by 8.0% in Q2 2026, despite a weaker year-to-date performance. Revenues within the Retail Division rose 7.0%. However, management noted that growth moderated compared to the prior quarter (+16.0%), reflecting reduced produce supplies following agricultural damage caused by Hurricane Melissa.
  • The Real Estate Division also contributed positively to earnings growth, with revenues increasing by 7.0% as additional units at its Belvedere complex were completed and sold.
  • Driven primarily by unrealised gains within its local investment portfolio, QWI Investments Limited recorded a narrower net loss of $51.0Mn compared $131.0Mn loss. Unrealised losses within its U.S. portfolio also fell.
  • The company benefited from improved cost efficiencies during the quarter. Cost of goods sold as a percentage of revenues declined, contributing to stronger gross profit performance. Consequently, gross profits ended the quarter at $232.39Mn (+37.5%), while gross margins grew to 23.2% from 20.5%.
  • Overhead expenses increased (+14.0%), reflecting continued pressures from higher wages, salaries and depreciation charges. However, finance expenses declined by 39.1%, largely due to debt repayments during the Quarter.
  • Buoyed by higher revenues and the reduction in operating and finance costs, net profit margins improved to 2.6%, reversing the negative margin of 9.0% recorded in Q2 2025.
  • Given the improved performance since the start of the year, net profits for the six months amounted to $4.49Mn (net loss of $9.40Mn in 2025).
  • Looking ahead, management is cautiously optimistic despite ongoing economic uncertainty stemming from Hurricane Melissa’s impact on tourism and broader economic activity. While some tourism-related investments within QWI have weakened, gains in companies such as Caribbean Cement Company and TransJamaican Highway have helped offset some of those declines.
  • JAMT shares stood at J$2.34 yesterday, reflecting a 0.9% increase year-to-date. The stock currently trades at a P/E of 24.3x, which is above the Junior Market Manufacturing Sector Average of 23.9x

(Sources: JAMT Financials & NCBCM Research)