Wisynco Group Limited is embarking on an exciting new phase of growth as it embraces sustainable packaging solutions and ramps up its export efforts to meet rising global demand. CEO Andrew Mahfood shared the company’s vision for the future last week at its seventh annual general meeting (AGM) held at the S Hotel Kingston, detailing an aggressive expansion plan aimed at solidifying Wisynco’s position as a key player in the international market.
The company’s latest initiative comes after successfully completing its largest capital expenditure program to date. This investment has doubled Wisynco’s production capacity, positioning it to better serve both the growing local demand and its expanding export markets, including the United Kingdom, United States, and the Caribbean.
New Packaging Solutions to Address Environmental and Shelf-Life Concerns
As part of its sustainability drive, Wisynco is diversifying its packaging portfolio to include glass and Tetra Pak options. This move is not only part of the company’s environmental commitment but also aimed at extending the shelf life of some of its products, which currently face limitations when bottled in plastic after carbonation.
“By adding new packaging lines, including one dedicated to Tetra Pak for the hotel and restaurant sectors, we’re taking an important step towards reducing plastic use,” said Mahfood. “Our goal is to explore sustainable alternatives that offer flexibility and longer shelf life, helping us meet the demands of both the local market and export regions.”
The Tetra Pak trial run, currently targeting the hotel industry, aligns with a growing trend among Jamaican hotels opting for plastic-free operations. Mahfood also highlighted that the glass packaging option would soon be expanded to meet broader market needs, further supporting the company’s commitment to environmental stewardship.
Focus on Expanding Export Capacity and Global Reach
In line with its multibillion-dollar expansion strategy, Wisynco is concentrating on enhancing its export business. Though exports currently account for 2% of the company’s revenue, Mahfood emphasized that with increased local production capacity, the company is now better positioned to expand its export offerings.
“Over the past few years, we’ve struggled to meet the demand in our export markets due to limitations in production,” Mahfood explained. “Now, with more capacity, we are refocusing on our international business and aiming to reach more markets with a more diversified range of products, including the Trade Winds and Tru-Juice lines, along with new canned products that offer longer shelf life.”
This shift to a more export-centric strategy reflects the company’s ambitions to grow its footprint globally, starting with the Caribbean and extending to key international markets.
Sustainability and Energy Efficiency: A Dual Approach
Wisynco is also looking inward to ensure its growth is sustainable in every sense of the word. Alongside its packaging changes, the company is investing in renewable energy, exploring solar power options, and increasing its use of liquefied natural gas (LNG) to manage energy costs more efficiently. Additionally, the company is expanding its wastewater treatment facilities to four times their current capacity, aligning with its ongoing sustainability initiatives.
Building Infrastructure and Strengthening Local Communities
Wisynco is also making significant investments in infrastructure to support its growing distribution network. In addition to its recent acquisition of land in Lacovia, St. Elizabeth, for a new distribution center, the company has already reaped the rewards of its Trelawny-based facility, which has proven to be a success since its opening in March 2022.
“This new facility in Lacovia will further bolster our distribution capabilities, ensuring we can serve the entire island efficiently,” said Mahfood. “Our expansion in the south-western region is a strategic move to enhance our logistics and provide better service to our customers.”
The company’s workforce is also growing, with Wisynco adding 500 new employees in May 2024 to meet the demands of its increased production capacity. Wisynco currently employs over 2,300 full-time workers and continues to invest in local job creation as part of its growth strategy.
Solid Financial Performance and Future Outlook
Wisynco’s financial performance in the 2024 fiscal year was strong, with a revenue increase of 11%, totaling $54.27 billion. While net profit grew by 5%, reaching $5.19 billion, the company’s net profit margins were impacted by ongoing investments in expansion.
The company’s aggressive growth strategy is reflected in its ongoing capital expenditure, which totaled $1 billion in the first quarter of the fiscal year. Despite a slight dip in net profit during this period due to external challenges, including Hurricane Beryl, Wisynco remains on track to meet its ambitious long-term goals.
As Wisynco looks to the future, its commitment to sustainability, innovative packaging, and strategic international expansion will likely position the company for continued success, both in Jamaica and on the global stage. The company is also gearing up for future dividend announcements, with plans to review shareholder payments in February 2025.
