• With growth in cost of sales, outpacing revenues and a falloff in other revenues, Carreras Limited (Carreras) reported flat earnings of $1.73Bn, for the quarter ending September 30, 2025 (Q3 2025).
• Revenues rose 4.5% year-over-year (YoY) to $5.47Bn, as demand for its products remained stable due to a combination of brand loyalty and product diversification.
• However, higher production costs and the impact of currency devaluation on imported products drove the cost of sales to grow 8.2% higher during the quarter, outpacing revenue growth. This resulted in a softening of gross margin to 5.64%, 150bps lower than Q3 2024.
• Other operating income, which comprises interest income, gains on disposal of PPE and other miscellaneous income, also declined by 61.5% to $32.36Mn.
• That said, the successful implementation of cost-containment measures led to lower administrative, distribution, and marketing expenses of $0.78Bn (-3.6%), which partly offset the higher COGS and lower other income.
• Despite the flat quarter, 9M earnings are still up by 30.1% YoY, driven by 20.8% revenue growth, which outpaced COGS (+12.8%) and administrative, distribution and marketing expenses (+14.4%).
• Although management has not reported any damage to its facilities from Hurricane Melissa, its operations may be disrupted, particularly with several retailers, including wholesalers and shops, shut down in the most affected parishes. This is likely to translate into softer Q4 earnings. However, looking ahead, strong brand loyalty and the inelastic nature of its products should support normalisation of earnings.
• Carreras' stock has appreciated 26.6% year-to-date due to stronger earnings and increasing dividend payments since the start of the year, closing at J$16.52 on Wednesday. At this price, the stock trades at a price-to-earnings (P/E) ratio of 10.9x, which is lower than the Main Market Manufacturing & Distribution Sector’s average of 18.6x. This implies that the stock may be undervalued.

(Sources: JSE & NCBCM Research)

• Key Insurance Company Limited (KEY) has officially applied to the Jamaica Stock Exchange (JSE) for the voluntary delisting of its ordinary shares from the Main Market, in accordance with JSE Main Market Rule 411B.
• The rule states that: A listed company may make an application to the Exchange to be delisted or to suspend trading in its securities. Any such application must be in writing, stating the reason for the application, and accompanied by a certified copy of the resolution of the Board authorising the application for delisting or suspension.
• The delisting application follows the completion of the takeover offer made by GraceKennedy Financial Group Limited (GKFG), which increased GKFG’s shareholding to over 98% of the Company’s total issued share capital. As a result, the remaining public float of the Company's shares is now below the minimum threshold of 20% required for continued listing on the JSE Main Market.
• KEY's stock has decreased 18.9% year-to-date, closing at J$1.98 at Wednesday. At this price, the stock trades at a price-to-book (P/B) ratio of 0.7x, which is lower than the Main Market Financial Sector’s average of 1.1x.

(Sources: JSE & NCBCM Research)

• Given the shift in United States (U.S.) trade policy this year, governments in the region should diversify their trade relations and strengthen regional integration, according to the latest annual report by the Economic Commission for Latin America and the Caribbean (ECLAC) on the region’s trade performance.
• The report titled “International Trade Outlook for Latin America and the Caribbean 2025: International trade in a new era of weaponised interdependence” details the recent evolution of the region’s trade, along with projections, analysing in particular the impact that the new United States trade policy has had on the region’s countries
• According to the report, because of the various tariff hikes implemented by the United States since February 2025, Latin American and Caribbean (LAC) countries face, on average, an effective tariff rate of around 10%, which is 7 percentage points lower than the average imposed globally. The highest average tariff is faced by Brazil (33%), followed by Uruguay (20%) and Nicaragua (18%). Meanwhile, the average tariffs levied vary across some Caribbean countries. Tariffs levied from January 2025 and August 2025 for Trinidad and Tobago amounted to 14%, the Dominican Republic 12%, Jamaica 6%, and the rest of the Caribbean 3%.
• The relative intensity of trade with the United States is also much higher in some LAC countries than in others. In 2024, the United States market accounted for around 60% of the Dominican Republic, almost half of goods exports from Costa Rica, 41% for Trinidad and Tobago, 21% for Barbados and 15% for Guyana. The United States remains the region’s main trading partner, but its relative importance has declined over the last 24 years. Its share of the region’s total exports fell from 56% in 2000 to 44% in 2024, and its share of total imports fell from 46% to 28%.
• Overall, LAC countries face lower tariffs in the United States than several of the U.S.’s main trading partners, particularly from Asia. This situation creates opportunities for trade diversion in favour of the region’s exports, in sectors such as clothing, medical devices and agro-industry.
• Meanwhile, there is evidence that the uncertainty generated by the changes in U.S. trade policy is affecting Foreign Direct Investment (FDI) flows to the region, especially in sectors that account for a large share of exports to the U.S. In the first half of 2025, FDI project announcements in the region totalled US$31.374Bn, down 53% from the same period in 2024 and 37% lower than the 2015-2024 average.
• To address this situation, ECLAC recommends that the region’s countries deepen their trade relations with partners such as China, the European Union, India, the Association of Southeast Asian Nations (ASEAN), the Cooperation Council for the Arab States of the Gulf, and the African Continental Free Trade Area. The market size and economic momentum of all these partners, along with the relatively low level of exports from the region to the corresponding countries at present, offer significant opportunities for future growth.
• Along with diversification of trade relations with extraregional partners, strengthening of regional economic integration is a strategic course of action that is essential to increase the global competitiveness of LAC and reduce its exposure to a more uncertain and protectionist international environment. Intraregional trade accounts for just 14% of the region’s total exports, which is one of the lowest levels in the world. This represents a striking growth opportunity, for most LAC countries, the regional market is the top destination for manufacturing exports and accounts for the largest number of exporting companies (especially micro-, small and medium-sized enterprises (MSMEs).

(Source: ECLAC)

• Barbados is developing a new debt-for-social swap designed to channel savings from restructured sovereign debt into key social programmes, including education, healthcare and heritage, economic affairs minister Kay McConney announced on Tuesday, November 18, 2025.
• McConney made the revelation at the United Nations BCCI Private Sector Forum. The minister for investment stressed that ambition requires financing and that traditional models are proving insufficient. The debt-for-social swap will be used to bolster education, healthcare and heritage, and build community resilience, while still maintaining fiscal responsibility, she added.
• She explained the concept in simpler terms: “What happens is you have debt, there’s a price for that, it’s your interest. What you do is restructure that debt, and whatever savings you make from a reduced interest rate, those savings are committed to the specific purpose you’ve determined, be it climate, be it nature, be it social.”
• McConney positioned the proposed social swap as the next logical step in a broader strategy of innovative financing that Barbados has been pioneering on the global stage.
• The minister also referred to the 2024 debt-for-climate swap. Barbados completed a debt-for-climate swap by repurposing $300 Mn in domestic debt through a syndicated loan from the domestic banking sector, generating an estimated $125 Mn in fiscal savings. These savings were set to be utilised for climate-resilient water, infrastructure and agricultural projects. She insisted that the debt-for-social swap, like the previous nature- and climate-focused deals, will not increase the island’s overall debt burden but will instead use existing obligations more strategically, creating fiscal space for high-priority social initiatives.

(Source: Barbados Today)

• The U.S. trade deficit narrowed more than expected in August as businesses imported fewer goods against the backdrop of higher tariffs, a trend that, if sustained, could be a potential tailwind for economic growth in the third quarter.
• However, a drop in imported consumer goods to levels last seen early in the COVID-19 pandemic and a decline in capital goods imports could signal slower consumer and business spending last quarter. "The good news for trade and the U.S. economy is the tariffs are working," said Christopher Rupkey, chief economist at FWDBONDS. "The bad news for trade and the U.S. economy is the tariffs are working. Markets and Federal Reserve officials will scramble to find which is true, but maybe both are."
• The trade gap contracted 23.8% to US$59.6Bn, the Commerce Department's Bureau of Economic Analysis and Census Bureau said on Wednesday, ahead of forecasts done by Economists. The report, which was initially scheduled for release on October 7, was delayed because of the recently ended 43-day shutdown of the government.
• Overall imports decreased 5.1% to US$340.4Bn with Goods imports tumbling 6.6% to US$264.6Bn. The decline was led by a US$11.3Bn plunge in industrial supplies and materials, mostly reflecting a US$9.3Bn decrease in nonmonetary gold. Capital goods imports slipped US$3.4Bn, with imports of computer accessories decreasing US$1.3Bn while those of telecommunications equipment fell US$1.1Bn. But imports of computers increased US$2.3Bn. Food imports declined by US$1.6Bn.
• Exports edged up 0.1% to $280.8Bn, reflecting services. Goods exports dropped 0.3% to $179.0Bn, with shipments of consumer products sliding $1.5Bn amid a $1.2Bn decline in pharmaceutical preparations.
• Exports of industrial supplies and materials, which also include crude oil, eased $0.6Bn. They were pulled down by a $1.1Bn decline in nonmonetary gold. Crude oil exports rose $0.8Bn. Exports of motor vehicles, parts and engines decreased $0.4Bn, but shipments of capital goods increased $2.4Bn to a record $62.4Bn boosted by computers.

(Source: Reuters)

• The European Central Bank will hold interest rates at least until the end of 2026, according to a majority of economists polled by Reuters, who also expected the euro zone economy to grow steadily with contained inflation despite a highly uncertain global outlook.
• A 73.0% majority, 65 of 89, said rates would stay through the middle of next year. A two-thirds majority, 46 of 71, expected no further rate changes through the end of next year, up from 57.0% in last month's survey. Only 21 expected one or more rate cuts by the end of 2026.
• The case for a longer pause has strengthened since the ECB last cut rates in June, with inflation remaining persistently around the 2.0% target, growth stable and unemployment at a record low. By contrast, some of its peers, including the United States, have struggled in part due to the White House applying sweeping tariffs on imported goods at rates not seen since the 1930s.
• Banking on that resilience, the ECB kept rates on hold in October for a third straight meeting. Many Governing Council members suggested the central bank was set for a long hold. Last month, President Christine Lagarde said the central bank was "in a good place," but emphasised that it was not "a fixed good place".

(Source: Reuters)

• Food and Financial Services conglomerate, Grace Kennedy Group Limited (GK), reported a net profit of $6.11Bn for the nine-months ending October 2025. This represented a 7.7% year-over-year (YoY) decline, driven by weaker operating performance in its Food and Money Services segments.
• Revenues amounted to $133.89Bn, reflecting a 5.9% year-over-year increase from $126.39Bn.
• Notably, the Food segment, GK Foods, recorded higher revenues compared to the prior year, driven by the strong performance of its international food business. However, higher-than-anticipated operating expenses weighed down the division’s overall profitability. Similarly, the Jamaican distribution business experienced revenue growth but also faced higher-than-expected warehousing and logistics costs.
• In the Financial Services segment, earnings before tax increased across all sub-segments except Money Services, which recorded a 24.7% decline due to ongoing challenges in the key remittance market, such as the 1% excise tax on cash-based remittance transfers from the U.S., that may have reduced the volume of transactions. The Insurance segment delivered a solid 9.0% increase, supported by growth in its motor and property insurance portfolios. Meanwhile, the Banking and Investment business was up 9.0%, driven by the expansion of First Global Bank’s loan portfolio and disciplined cost management.
• Management continues to assess the full impact of Hurricane Melissa on its profit and loss, as several of its facilities sustained damage. However, operations have resumed in the eastern parishes. Looking ahead, while key facilities, including the Agro-Processors plant in Hounslow, the Montego Bay distribution centre, and the Grace Food Processors (Meats) plant in Savanna-la-Mar, were affected, there are opportunities for the Company to increase revenues and earnings to partially offset potential declines. Increased demand for products from unaffected food facilities, as well as expected growth in the Money Services segment driven by higher transaction volumes, should bolster the company’s performance. Nonetheless, this will be partially tempered by higher insurance payouts, which may ultimately reduce overall earnings.
• GK’s stock price has declined by 12.6% year-to-date, closing at $72.17 on Tuesday. At this price, the stock is trading at a price-to-earnings (P/E) ratio of 9.11x, which is marginally lower than the Main Conglomerate Sector’s average of 9.2x.

(Sources: JSE & NCBCM Research)

• Driven by strong revenue growth from its expanded operations, Future Energy Source Company Limited (FESCO) recorded a net profit of $205.82Mn for the three months ending September 2025, a 20.9% increase relative to the same quarter in 2024, marking its best quarterly performance to date.
• Revenues grew 5.8% year over year to $7.93Bn, despite lower fuel prices, as volume increased (7.1% YTD). FESCO has no control over the supply price of fuel; instead, the Company focuses more on the quantity of fuel sold and its pricing to attract customers.
• Cost of sales grew by 4.7% to $7.83Bn, reflecting both high ex-refinery prices for gasoline and the increase in volumes. However, with revenue growth outpacing the growth in costs, gross profit increased by 23.3% to $506.98Mn, which translated into a 95 basis points (bps) increase in gross profit margin to 6.7%. The improvement in gross profit reflects both increasing throughput (measured in litres of fuel sold) and diversification of product offerings and services (increased retail presence).
• Meanwhile, operating expenses totalled J$313.93Mn (+24.8%), reflecting an expanded asset base, including increased LPG and service station assets, alongside a larger number of operating sites, such as FESCO Oval, for a full quarter. An 18.5% staff cost increase to J$113.20Mn, was the biggest contributor, given an expanded workforce and wage adjustments.
• Fesco’s Q2 numbers contributed to 6M earnings growing by 8.3% YoY. Management anticipates that FY2026 earnings are on track to surpass its FY2025 results by December 2025 with three months to spare.
• FESCO and several of its dealers (FESCO and FESGAS) sustained property damage as a result of Hurricane Melissa, with the total cost still undetermined. However, as of November 5, 2025, all but one of its FESCO-branded stations had reopened. Moreover, the Company anticipates opening one to three new dealer-operated service stations before its financial year ends in March 2026. These expansions could boost revenue and bottom-line growth, ultimately delivering more value to shareholders.
• FESCO’s stock price has decreased by 24.8% since the start of the calendar year, closing Tuesday’s trading session at $2.88. It currently trades at a P/E of 14.8x, which is significantly below the Junior Market Distribution Sector Average of 26.6x.

(Sources: JSE & NCBCM Research)

• The United States (U.S.) has moved forward with reactivating shuttered military installations in Panama and Puerto Rico to increase its regional footprint. However, efforts to do the same in Ecuador failed after voters turned down the proposal in a referendum.
• American forces have resumed operations at Fort Sherman in Panama, a site dormant since the U.S. handed over the Panama Canal Zone in 1999. The drills build on a bilateral security pact that allows shared training to combat threats like organised crime. Panama’s president confirmed the activities target no specific neighbour, though they coincide with U.S. naval deployments in the area.
• In Puerto Rico, the Roosevelt Roads Naval Station in Ceiba has reopened after two decades offline. The base, once central to Caribbean operations, closed in 2004 amid local opposition to bombing runs on Vieques (an Island off Puerto Rico's eastern coast) that caused environmental damage and health issues. Now, construction teams have resurfaced runways and expanded facilities, enabling air and sea missions. U.S. officials operate from five sites across the island as part of a strategy to monitor nearby waters. Puerto Rican groups protested the revival, citing risks of the territory serving as a staging point for actions against Venezuela.
• However, Ecuador presented a different outcome. Leaders there discussed reinstating a U.S. air base at Manta, which American forces left in 2009 after a constitutional ban on foreign militaries. President Daniel Noboa backed the idea for anti-drug efforts, but citizens voted against it. The rejection halts U.S. access, though some training agreements remain in place.
• These steps show U.S. priorities in curbing narcotics flows and responding to Venezuelan instability. Eight warships and aircraft now patrol the Caribbean, with Panama and Puerto Rico providing key logistics. Analysts note the buildup echoes Cold War postures, raising concerns over national autonomy in Latin America. The Pentagon frames the actions as cooperative, yet critics argue they could strain ties with nations wary of external involvement.

(Source: Tico Times)

• Suriname has reached a major milestone toward its first offshore gas production in 2030. President Jennifer Simons announced that the Sloanea-1 gas field in Block 52 has been officially declared economically feasible, following consultations with Staatsolie and Petronas.
• The approval of the commercial field marks a turning point for Suriname's energy sector. With the green light from Staatsolie and Petronas, Suriname is on track for a Final Investment Decision¹ (FID) in the second half of 2026. If this decision is made, production could begin in 2030. Under the partnership, Petronas holds an 80% stake, while Staatsloie, through its subsidiary, Paradise Oil Company, holds the remaining 20%.
• According to the president, the approval means that the recoverable gas volume has been determined and that the project is economically viable. Petronas Suriname is now working on a full development plan, which must first be approved by Staatsolie before the final FID can be issued.
• The Block 52 project is unique for the region. It will be the first large-scale gas development in the Caribbean with a floating liquefied gas production facility. This positions Suriname as a potential energy hub for the surrounding area, strengthening the country's role in the regional energy transition.
• Furthermore, the development of the gas field offers Suriname the opportunity to capitalise on its offshore gas reserves. The project is expected to lead to a stable supply of relatively clean energy, which can both stimulate economic growth and support industrial production.
• President Simons expressed her appreciation to all partners who contributed to the process. "If we want a prosperous future, energy is an essential part of it," she emphasised. With this step, Suriname is laying a solid foundation for sustainable growth and a new phase in the regional energy sector.

_______________________

¹Regarding a gas project, this refers to the decision of a project sponsor to commit to and proceed with the project. Once this decision is made, the sponsor awards to a qualified contractor the engineering, procurement, and construction contract needed to build the gas facility.

(Sources: Suriname Herald)