Campari selling Federated Pharmaceutical for US$14 million

THE Italy-based Campari Group announced plans to sell its Federated Pharmaceutical Company Ltd, a division of J Wray & Nephew Limited, for US$14.4 million (J$1.6 b) to the Glen Christian-led Kirk Distributors Limited.

It forms part of efforts by the Campari Group, the parent company of J Wray & Nephew, to rid itself of non-core assets in Jamaica.

“The deal consideration is US$14.4 million (11.8 million euro at the current exchange rate) on a cash free/debt free basis. The deal structure foresees various post-closing price adjustments relating to stock and other assets and liabilities,” Campari stated in a release posted on its website on Monday.

The deal, which the company hopes will be completed by March 2015, will allow the Jamaica operations to focus on producing overproof rums, led by Appleton Estate. The Federated Pharmaceutical division of J Wray & Nephew Limited entered Campari’s business in 2012 as part of the overall acquisition of Lascelles deMercado & Company Limited.

The pharmaceutical company was founded in 1958, currently employs over 73 people and manufactures 95 products. It exports to Antigua, Barbados, British Virgin Islands, Cayman Islands, Dominica, Guyana, St Vincent, St Kitts, St Lucia, Trinidad, Turks & Caicos, and the United Kingdom, according to its online company profile.

Campari indicated that the transaction underlines its “strategy of strengthening its focus on its core high-margin spirits business via streamlining of non-core businesses”.

The sale announcement follows a series of earlier divestments by the group in its financial year. Specifically, Campari previously announced that it would exit the consumer agency brand business within the merchandise business in Jamaica during the first quarter 2015.

In August, Campari sold a property by the wharf in Kingston for 2.4 million euro (J$350 million) in order to focus on core activity. The financials avoided listing the purchaser. Concurrently, it announced that it sold a detergent brand for a 200,000 euro loss.

Earlier in its financial year, the group terminated its distribution arrangement for Kimberly-Clark products, which included household names like Kleenex, Scott, and Huggies. That distributorship was acquired by T Geddes Grant.

Campari acquired Lascelles deMercado in December 2012 for US$409 million from Trinidad-based majority shareholder CL Financial, and local shareholders. In September 2012, details of the acquisition indicated that Campari would nearly double Campari’s workforce from 2,300 to 4,300. Since that time, the company embarked on restructuring and announced that it laid off some 200 workers.

Christian, CEO and chairman of Cari-Med Limited and Kirk Distributors Limited, was recently inducted into the Private Sector Organisation of Jamaica (PSOJ) Hall of Fame as its 22nd inductee.

Kirk Distributors, incorporated in 2005, took over the operations and distribution of the Colgate-Palmolive portfolio which includes household names like Colgate toothpaste, Protex, Castile, Carib Carbolic and Refresh bar soaps. They also distribute Ajax, Fabuloso, Soflan, Suavitel and Blue Bomber.

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Campari selling Federated Pharmaceutical for US$14 million

Jamalco pumps $80 million into Manchester relocation exercise

BY KARENA BENNETT Business reporter bennettk@jamaicaobserver.com

Sunday, January 18, 2015    

BAUXITE mining and alumina refinery, Jamalco is pumping $80 million into the sub-division development of 291 residential lots at its reclaimed site in Blenheim, Manchester.

The sub-division, which commenced last September, forms part of Jamalco’s resettlement land development strategy, which includes providing alternate living arrangements for persons who were displaced during the bauxite/alumina company’s acquisition of the land to conduct mining operations.

The project is currently at an advanced stage with infrastructure development being carried out on roads, drainage, provision for water distribution and electricity as well as the creation of a green space for community residents.

Industry protocol requires mining companies like Jamalco, to exercise several relocation options including temporary housing rental, cash payment, or the development of sub-divisions on reclaimed land or the acquisition of land where applicable.

“We are simply fulfilling routine obligations that we have to our host communities in keeping with the standards of our industry,” manager of corporate services and government affairs at Jamalco, Leofric Lambert told the Jamaica Observer in an emailed response.

“Phase 1A is currently under construction. Several houses have already been built in the area so our focus at this time is therefore on improving the social infrastructure. The provision of electricity by the JPSCo is all that is outstanding to complete the exercise,” he added.

The development project is spread across 827,006 square metres of land; with 71 lots under construction in phase one, 69 assigned as residential lots and two for drainage.

“Some persons have been allocated more than one lot depending on how much of their land was acquired for mining,” Lambert told the Sunday Finance.

No timeline has been set for work to commence on the remaining two phases. Jamalco is eyeing potential partnerships with private housing development companies to complete the project, Lambert said.

The Clarendon-based plant mines an average of 1.4 million tonnes of alumina per year.

Last year, Hong-Kong based global commodities company, Noble Resources, finalised a deal to buy out Alcoa’s stake in the Jamalco’s alumina refinery for US$140 million ($15.9 billion). The deal gives Noble a 55 per cent stake in the Jamaican alumina refinery and allows the company to access a further 780,000 tonnes of annual alumina from the Jamaican plant.

Prior to the acquisition, Noble already secured up to 6.1 million tonnes of alumina from Jamalco’s output over a 12-year period through a US$120-million forward sale contract with Clarendon Alumina Production (CAP), a company wholly owned by the government, which owns the remaining 45 per cent.

Alcoa will however continue to manage the operations of Jamalco over the next two years.

Minister of Science, Technology, Energy and Mining, Phillip Paulwell, reportedly described the new partnership as providing tremendous prospects for the future. He said that as one of the largest global supply chains companies in the world, Noble’s decision to invest in Jamaica was an encouraging indicator for the industry and the country as a whole.

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Jamalco pumps $80 million into Manchester relocation exercise

US grants $450 million to link job training to employers

WASHINGTON (AP) — Vice President Joe Biden announced almost a half-billion dollars of grants Monday to community colleges working with employers on job training.

Linking training to industry demand is key to the Obama administration’s strategy for improving wages and reducing unemployment.

Massasoit Community College in Massachusetts and Wisconsin’s Chippewa Valley Technical College received the largest grants of about $20 million each.

A Maryland programme will receive US$15 million to partner with companies like Raytheon and IBM to train workers with little education for jobs in cybersecurity or information technology. Schools in Kentucky will get US$10 million to expand online learning for degrees in computer and medical fields.

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US grants $450 million to link job training to employers

"Over a million Jamaicans won"t realise their potential"

OVER a million Jamaicans will never realise their true potential, figures management consultant Trevor Hamilton.

His math shows harrowing statistics on the country’s labour force.

“Over 65 per cent are failed by the school system and are also fooled that they must have five or more CSEC subjects to succeed,” he said. “Over 70 per cent of tertiary students graduate without any vocational skills, and over 60 per cent of the labour force is not employable.”

He estimates that less than three per cent of the population is able to speak another language, while over 300,000 persons are deprived of opportunities mainly due to their “excessive political loyalties”.

“A rational HR strategy to give the country economic and social competitiveness is overwhelmingly believed to be the only way to prosperity for all,” he said. “Now more than ever, the powers that be need to ensure that the workforce is prepared and empowered to contribute positively towards nation-building.

“Let me hasten to add that this can only be realised through the process of purposeful alignment.”

Purposeful alignment happens when investments are made in talent management as a means towards achieving a firm’s sustainable competitive advantage.

With globalisation and the consequential competition for resources, markets and harmonised standards of governance, products and services, consultants have to be familiar with best practices in their areas of specialisation, according to Hamilton.

“They also need to know exactly how to make modifications for proper alignment to the socio-economic and cultural dynamics of the environment in which they serve,” he said.

Being bilingual is also essential.

He added: “Consultants need to work with strategic partners from other jurisdictions to get accelerated access to new solutions and knowledge and lessons learned from the application of various strategies to be able to bring accelerated solutions to their clients and avoid pitfalls that others have experienced.”

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"Over a million Jamaicans won"t realise their potential"

Jamaica to benefit from US$105 million World Bank loans

WASHINGTON D.C., United States, Friday September 5, 2014, CMC – Jamaica has signed three loans totalling US$105 million with the World Bank to support a number of government projects.

Finance and Planning Minister Dr. Peter Phillips, who is leading a four-member delegation to the United States, Wednesday signed the accord, while World Bank Country Director for the country, Sophia Sirtaine, signed for the bank.

The loans are in support of three government projects – the Foundation for Competitiveness and Growth, which will receive US$50 million; the Youth Employment in Digital Animation Industry, US$20 million, and the Strategic Public Sector Transformation Project, US$35 million.

“The projects are intended to further the overarching goals of the government of Jamaica-World Bank Country Strategy for the period 2014 – 2017; to support the government’s investments in key strategic areas, including physical sustainability in youth employment; public sector modernization and to facilitate a more enabling environment for private sector growth,” Phillips said.

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He said the loans represent an important cooperation between the Government of Jamaica and the World Bank, and is aimed at advancing the prospects for growth as the country goes through a strenuous economic reform programme that forms part of the agreement with the International Monetary Fund (IMF).

Phillips said the Portia Simpson-Miller administration will do its utmost best to ensure a smooth implementation of the three projects, noting that the funds for the Foundation for Competitiveness and Growth project will enhance competition in the business environment, facilitate strategic private investments and support Small and Medium Enterprises (SMEs).

Funds for the Youth Employment in Digital Animation Industry will provide training and coaching for over 200 young Jamaicans, enhance entrepreneurial skills and create 150 start-up companies.

Under the Strategic Public Sector Transformation Project, the funds will be used to strengthen public investment management systems, budget preparation process and property tax compliance administration.

In her remarks, the World Bank official praised Jamaica for implementing programmes aimed at spurring economic growth.

She said the bank is committed to working with Jamaica in ensuring the success of its various economic programmes.

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Jamaica to benefit from US$105 million World Bank loans

Jamaica welcomes close to 1.3 million tourists

Jamaica welcomed almost 1.3 million tourists over the first seven months of  the year. 

The Jamaica Tourist Board says the figure was 2 percent higher than last year. 

The strongest growth was seen from the Canadian and European markets helping the country to steadily reduce the dependence on the U.S. market for tourists.    
In the meantime, cruise arrivals were up 7 percent over last year.   

More than 845 thousand passengers on 246 ships visited Jamaica from January to July. 

Growth was seen in arrivals in Falmouth and Ocho Rios, but there was a decline in arrivals in Montego Bay.

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Jamaica welcomes close to 1.3 million tourists

$300 million worth of new vehicles for police

News

Alicia Sutherland Sunday, September 08, 2013

MANDEVILLE, Manchester — Minister of National Security Peter Bunting has said that the police are set to receive new vehicles, including patrol cars, pickups and motor bikes.“We have just placed an order for about $300 million worth of vehicles for the police,” he said.Bunting made the disclosure at a handing over ceremony of a motor bike and refurbished barracks and a newly-built recreation area at the Mandeville Police Station on Friday.He said he is certain that Area Three, which consists of Manchester, St Elizabeth and Clarendon, will get their “fair allocation”.Bunting said, however, that given that the country is at the beginning of the agreement with the International Monetary Fund (IMF), there are severe constraints on public sector investment and expenditure.He commended the Manchester Chamber of Commerce which spearheaded the initiative for the bike to be donated by automotive company, Kingston Industrial Garage and the other stakeholders who lent their support for the work to be done.“These contributions today, to my mind, signal a recognition on the part of the (Manchester) Chamber of Commerce, its members, other wider stakeholders that they too have a part to play in making our communities safe and secure,” Bunting said.Manchester Chamber of Commerce president Wendy Freckleton said that the refurbished barracks and the building of the recreation area cost close to $1 million.BUNTING … there are severe constraints on public sector investment and expenditure

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$300 million worth of new vehicles for police

World Bank to loan US$10 million to Antigua

Business

Friday, August 16, 2013

THE World Bank is providing a US$10- million loan to Antigua and Barbuda to finance the public and social sector reform activities for the next five years.Finance Minister Harold Lovell and World Bank Country Director for the Caribbean Sophie Sirtaine signed the loan agreement.In 2012, the World Bank granted a Project Preparation Advance of US$980,000 to start the groundwork for the Public and Social Sector Transformation (PSST) project and earlier this year it approved the loan for the five-year project.A government statement said that the Baldwin Spencer administration “can now intensify implementation of the PSST Project having formally executed the loan agreement with the World Bank”.It said the project supports the National Economic and Social Transformation (NEST) Plan, the country’s 2010-2014 strategic response to the global economic and financial crisis and the 2010- 2013 Public Sector Transformation Strategy.“Antigua and Barbuda demonstrated its commitment to improve macro-economic management with the development of the NEST Plan and, in particular, by implementing its fiscal consolidation programme with financial assistance from the International Monetary Fund, the Caribbean Development Bank (CDB) and other development partners,” the statement said.It said the island’s successful implementation of its fiscal consolidation programme and the government’s adoption of public financial management reforms cleared the way for the World Bank to provide much needed assistance for public and social sector initiatives.Under the loan agreement, just over four million US dollars is designated to support the introduction of Active Labour Market Programmes to increase employment opportunities, skills and earnings of citizens between the ages of 17 to 50 years.Under this project component, the One Stop Employment Centre (OSEC) will be fully operationalised to offer employment services to job seekers.Funds will also be allocated to strengthen public institutions for the strategic management of government policies as well as to “fundamentally modernise human resource management to improve capacity, systems, legislation and policies for the management of an integrated public service”.The US$10-million loan is to be repaid over 30 years with a five-year moratorium on principal payments.— CMCThe World Bank headquarters in Washington, DC

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World Bank to loan US$10 million to Antigua

Purity"s profit past $10 million

CONSUMERS bought more Purity, Miss Birdie and Hearty Goodness baked goods in the June quarter, which translated to a 474 per cent year-on-year rise in profit to $10.6 million for brand owners, Consolidated Bakeries .

Revenues, which hit $156 million in the quarter, were up 40 per cent year over year, due to windfalls from increased marketing.“These increases represent real growth in volumes across our key items and primarily a result of activities in distribution and market programmes,” indicated Anthony Chang managing director in notes accompanying the second-quarter financials released this week.The rise in its marketing spend, although undisclosed, resulted in a marginal rise in its operating expenses-to-sales ratio at 29.7 per cent for the half year versus 29.6 per cent for same period last year.“Given the uncertain economic situation and desire to have tactical flexibility, maintaining a good liquid position is important. During this quarter focus was placed on in-store marketing programmes. These programmes gained additional retail presence helping same store sales results,” added Chang.Chang also indicated that the Miss Birdie brand gained increased online visibility.“We created additional social media presence for Miss Birdie brand, which has been well-received. Our active presence on social media has assisted our brand growth and reach,” he stated.The company noted that it benefited from increased efficiencies with gross margin percentage increasing to 36.1 per cent compared to 34.2 per cent for the same period last year.The bakery’s managing director also noted that the company’s working capital position improved in this period to $122.9 million, which was 349 per cent higher than year-earlier levels.Chang also hinted at prospects for increased overseas sales. The company already exports to the Jamaican Diaspora, but overseas sales still account a small fraction of total sales.“Our trade team conduct[ed] trade visits in North America which resulted in potential trade opportunities,” wrote Chang.The Kingston-based bakery raised some $100 million and listed on the Jamaica Stock Exchange Junior Market in December 2012. The proceeds of the IPO improved its working capital and operational processes.The company was incorporated in 1957 following the consolidation of three existing bakeries: Valentine Bakery, owned by the Chang family; Powell’s Bakery, owned by the Powell family; and Huntington Bakery, owned by the Seivright family.In 1972, the Chang family members acquired the shares of the Powell and Seivright families and since then, have owned and operated the company.

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Purity"s profit past $10 million

Where is the $100 million?

News

JLP wants probe into spending of money allocated for festival activitiesKIMMO MATTEWS Observer reporter Matthewsk@jamaicaobserver.comFriday, August 09, 2013

OPPOSITION Jamaica Labour Party (JLP) Spokesperson on Culture Olivia ‘Babsy’ Grange yesterday called for an investigation into the spending of the $100 million allocated for this year’s Emancipation and Independence celebrations.“What did they (Government) do with a $100 million for the Independence celebration. It was not reflected in the events that we saw,” said Grange, who spoke with the Jamaica Observer yesterday as she toured with JLP candidate Beverley Prince, who went up against Sheryn Bromfield in the Cassia Park by-election.“That was not a Grand Gala; it was a big stage show,” the Opposition spokesperson quipped.“Certainly Jamaicans went to see the Grand Gala but they saw the wrong Gala; it was a big disappointment [and] an investigation is needed,” said Grange.The Ministry of Youth and Culture said, however, that the celebrations were a success.“This year’s event, which culminated the celebration of the country’s 51st anniversary of Independence, was truly a symbol of what can be attained through collaborative action and synergies,” a release from the ministry stated.The release said the $100 million was spent on all festival and Independence celebratory activities co-ordinated by the Jamaica Cultural Development Commission in all parishes, as well as the national level, adding that the Grand Gala was within its budget of $52.8 million.The ministry, meanwhile, expressed thanks and appreciation to all participants, adding that their efforts allowed for “a successful production and execution of this year’s Grand Gala event”.

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Where is the $100 million?

Sunday lottery earns Supreme Ventures $700 million in three months

Business

BY STEVEN JACKSON Business writer jacksons@jamaicaobserver.comFriday, August 09, 2013

Sunday lottery earned $700 million in its first three months of allowance, according to financials from dominant gaming company, Supreme Ventures Ltd (SVL).“The company began Sunday/holiday lottery sales and game draws on 1st April 2013. The additional selling days positively impacted the revenues for the financial period, with Sunday sales contributing over $700 million to the revenues,” said SVL in a statement adjoining the June-quarter financial accounts, signed by chairman Paul Hoo and CEO Brian George.SVL earned $8.6 billion in total revenues for the June quarter compared with $7.2 billion a year earlier.The directors added that the impact of Sunday sales on total revenues was, however, countered by a reduction in unclaimed prizes of $44 million, lower net win of $119 million from VLT gaming due to delayed opening of the refurbished Acropolis lounges and Odyssey, and $38 million from discontinued hospitality operations.Government in February announced measures to raise $16.4-billion in additional taxes and offered SVL carrot-and-stick measures. It first allowed SVL to sell lottery tickets on Sundays and public holidays effective April 1, but concurrently forced them to incorporate an increase in lottery tax (GPT) rates from 17 per cent and 23 per cent to 20 per cent and 25 per cent respectively on nine games.Christians view Sunday as a religious day of rest, and the local church body opposed the introduction of Sunday lottery for years.Meanwhile, higher Lotto liabilities and taxation were blamed for the company posting $99.9 million in June-quarterly net profit or 69 per cent less than a year earlier.“The decrease in net profit after tax was directly attributable to higher-than-designed lottery game liabilities and the impact of increased taxation on the gaming sector, which came into effect on 1st April 2013,” stated financials.The directors’ outlook remained tempered by the weak economy and taxation.“The third quarter is expected to be a continuation of the challenging times faced by many local companies, as the limited disposable income of many consumers will be directed towards back-to-school expenses,” stated the joint statement in the financals. “While game liabilities will correct themselves over time, the company expects that the impact of the new taxation measures on the gaming sector will continue to adversely affect the financial results going forward.”

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Sunday lottery earns Supreme Ventures $700 million in three months

Almeida"s connected shares dip $200 million

Business

BY STEVEN JACKSON Business writer jacksons@jamaicaobserver.com Friday, August 09, 2013

The connected shareholding of National Commercial Bank (NCB) director Robert Almeida dipped by roughly $200 million amid the group’s acquisition of insurance giant Advantage General Insurance (AGI).The dip represented the largest movement amongst the 11 directors in the bank — the nation’s largest defined by assets at $414 billion.Almeida’s personal shareholding remained unchanged, but his connected party shareholding dipped to 50.2 million in the March 2013 quarter, from 60 million last Christmas, according to the latest listing of shareholding. The stock price fluctuated at around $20 during the quarter which periodically valued these shares at $200 million.“I am pretty sure it’s related to the transfer of shares from one group company to another,” he told Caribbean Business Report from Canada on Wednesday night. “It would have moved from a company in which I am on the board to another company in which I am not on the board.”He declined, during the phone interview, to disclose the names of the institutions. Later he indicated that the transfer occurred during a period when NCB Capital Markets fully acquired AGI. Almeida was listed as a director of AGI during the review period.“It happened at a time when AGI was acquired and shares would have been moved from it because NCB cannot own its own shares. So it could have been shares owned by AGI.”In February, NCB Capital Markets completed the acquisition of a majority stake of AGI for US$34 million, according to US securities and Exchange Commission (SEC) information. The acquisition would facilitate the expansion of NCB into the general insurance market. Advantage General is the largest insurer of motor vehicles in Jamaica.Prior to the deal, AGI was majority held by Canadian-Jamaican investor Michael Lee-Chin. But he also owns some two-thirds of NCB, the parent company of NCB Capital Market.“In order for the transaction to get clearance,any NCB shares held by the company would have to be [transferred or sold] prior to the completion of the transaction due to regulatory requirements,” concluded Almeida.ALMEIDA… It happened at a time when AGI was acquired

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Almeida"s connected shares dip $200 million