AS Bryden & Sons Holdings Limited (ASBH) is significantly enhancing its regional presence with targeted investments aimed at increasing its production and warehousing capabilities across various Caribbean markets.
Celebrating over a century of operation, the Trinidadian enterprise has been expanding its regional footprint steadily for the past two years. A major step in this expansion was the recent acquisition of a 44.74% stake in Caribbean Producers (Jamaica) Limited (CPJ), which marks a strategic move into new distribution channels. CPJ, a key player in Jamaica’s hospitality sector, operates within the HORECA (Hotels, Restaurants & Catering) distribution space.
Paul B. Scott, Chairman of ASBH, highlighted the strategic advantages of this acquisition during the company’s first annual general meeting (AGM). “Acquiring CPJ not only introduces AS Bryden to significant US dollar earnings but also offers substantial growth potential. We anticipate considerable expansion of CPJ’s stock in Jamaican infrastructure,” Scott stated.
The $5.17 billion (US$32.82 million) investment in CPJ reflects ASBH’s commitment to increasing its stake, aiming to achieve majority control in the near future. CPJ generates a significant portion of its revenue in US dollars from Jamaica’s hospitality industry and holds a 51% stake in CPJ (St Lucia). This revenue stream is crucial for ASBH, given the challenges in converting Trinidad & Tobago dollars (TTD) into other hard currencies.
Funding for the acquisition was sourced from a combination of internal cash reserves and debt facilities. Richard Pandohie, ASBH’s CEO, will now serve as Chairman of CPJ, with Nicholas Hospedales stepping in as CPJ’s CEO as of July 9. ASBH has also added Nicholas Scott, Michael Conyers, and David Franco to CPJ’s board of directors, while previous members including Christopher Berry and Konrad Berry have resigned.
We are developing new distribution facilities in Trinidad and Guyana, which will include infrastructure for frozen and chilled products. We hope to leverage our relationship with CPJ to expand our business beyond Jamaica.
Scott
This acquisition of CPJ follows ASBH’s February investment in Stansfeld Scott (Barbados) Limited, where ASBH acquired a 55% stake. Stansfeld Scott, a distributor of wines, spirits, and health supplements, aligns with ASBH’s strategic goals of integrating family-owned businesses into its portfolio.
In addition to the CPJ acquisition, ASBH is nearing completion of a US$30-million central logistics hub in Trinidad. This facility will streamline distribution operations and bolster export efforts throughout the Caribbean. It complements a new distribution center in Guyana aimed at supporting both the food distribution and pharmaceutical sectors, particularly through Bpi Guyana Limited, a 51% subsidiary.
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Scott also mentioned future plans for enhancing Trinidad’s manufacturing sector, specifically referencing the Genethics business, which will see upgrades and capacity increases. Furthermore, ASBH’s 75% controlled subsidiary Ibis Construction Equipment Sales & Rental Limited in Guyana is projected to continue its rapid growth, with expectations of a 40% increase in business this year.
The company’s second-quarter report, due by August 14, will reflect the impact of the Stansfeld Scott acquisition and confirm Bryden pi Limited as a wholly owned subsidiary. CPJ’s profit contribution will be recognized in the third-quarter report, expected by November 14.
In the first quarter, ASBH reported a 7% increase in consolidated revenue to TT$629.79 million (J$14.22 billion), despite an 8% decline in operating profit due to underperformance in its premium beverage sector and non-recurring items. Net profit fell by 38% to TT$18.75 million (J$423.38 million), with earnings per share at TT$0.01.
ASBH’s assets decreased by 4% to TT$2.10 billion, with total liabilities reduced to TT$1.38 billion. Shareholders’ equity stood at TT$721.31 million. The company’s stock closed at J$40.43/US$0.2249 on Tuesday, reflecting a market capitalization of J$56.18 billion (TT$2.42 billion). Shareholders will receive a dividend of TT$0.01323, totaling TT$18.39 million, with Seprod receiving TT$9.94 million.
Although ASBH had previously aimed to list on both the Jamaica Stock Exchange (JSE) and the Trinidad & Tobago Stock Exchange (TTSE) in 2022, it successfully listed on the JSE Main Market in November 2023 and on the JSE USD market in March 2024. The TTSE listing remains pending, with Scott expressing hope for resolution by year-end.
We are working with TTSEC to finalize this matter.
Scott
