Paramount Trading targets exports for greater growth

HAVING managed to pivot from some challenges associated with the novel coronavirus pandemic, lubricants, cleaning, and sanitization products manufacturer Paramount Trading Limited (PTL) is further seeking to grow its business from increased export sales over the next few years.

“Having an already established presence in the local market, we are building and expanding our distribution network regionally so as to increase the accessibility of our brand of oil, lubricants, and cleaning products,” said Chief Executive Officer Hugh Graham in his response to queries from the Jamaica Observer's Business Observer.

“We are aiming to grow our export revenue in the region of 35-40 percent of total revenues within the next three years,” he added.

Graham noted that as a current participant in the Jampro-led Export Max III programme, the company, through the guidance being received and the build-out of a road map, is being made ready for its venture into these new export markets.

The CEO, in further mentioning the addition of some new products and diversification strategies that have been integrated since the pandemic, said the company will continue to align its manufacturing output with the projection for export sales.

During the financial year, PTL established new distribution channels for some product lines and also launched a lubricant packaging line for passenger car motor oils (PCMO). The business also quickly responded to supply chain disruptions following its engagement of strategic initiatives, which helped to reduce risks, improve efficiency and profitability.

“We will also leverage technology to generate operational and cost efficiencies and to deliver improved customer service,” Graham said of the company's plans for digital transformation.

The company, which has sought to convert opportunities presented by the rapidly changing environment, said it will continue to sustain and improve its current business as it further gives support to the manufacturing sector and also moves to forge contract manufacturing agreements with industry players.

PTL, at the end of its financial year ended May, recorded revenues of $1.4 billion, though 5 percent below the prior-year figures. Profits, however, increased by approximately $10.6 million or 20 percent more to total $63.6 million when compared year on year. Total assets at the end of the year fell to $1.6 billion, 11 percent less than that in 2020.

“PTL had its challenges stemming from the restrictions associated with the [novel coronavirus] pandemic, however, the company was able to recover lost ground in the final quarter, experiencing a recovery in all business units with an overall improvement of 15 percent year on year.

“Amid the far-reaching impact of the pandemic on market conditions, our customer base, and supply chains, it was our concerted efforts to support and secure the core business, along with our agile response to innovate during this most challenging year that helped to sustain and improve our profitability as well as position PTL to expand into new products and markets in 2021/2022,” the company's recently published annual report stated.