Wisynco Group has just scratched the surface of its export potential, says Assistant Manager of Private Equity at PROVEN Management, Julian Morrison. 

Assistant Manager, Private Equity at PROVEN Management, Julian Morrison

Speaking on Taking Stock with Kalilah Reynolds, the analysts said that Wisynco, which is one of Jamaica’s largest manufacturing and distribution companies, is one the road to recovery from the coronavirus pandemic.

The company reported a 19 percent increase in revenue for the quarter ending December 2021, the highest in their history.

“So not only are they recovering well in the midst of the pandemic, but they are also setting records for themselves,” Senior Wealth Advisor at Ideal Securities, Dwayne Taylor said.

Their net profits were also up by 69 percent. Notably, the company’s export revenue more than doubled, up 103 percent. According to Taylore, this is a signal that Wisynco is positioned nicely to expand that aspect of the business.

However, Morrison noted that a large share of their revenues is still in Jamaica.

“So it means that in terms of exports they are just starting to chip away at that and it could be the tip of the iceberg,” he added.

Wisynco’s largest export market is the United States and several Caribbean territories. 

Taylor also noted that Wisynco has been able to maintain a very low leverage ratio.

Dwayne Taylor, Wealth Advisor at Ideal Portfolio Services

“What I mean by that is, a lot of their assets aren’t backed by loans or liabilities. So, they are very cash intensive and it’s a good sign of the financial position of the company,” he said.

“Any company that you know has a lot of assets and they don’t have to take out too much debt to fund those assets, is definitely a company that you want to pay keen attention to,” he added.

Their cash flow has increased from approximately $5.9 billion to $8.8 billion, an increase of roughly 30 percent.

“That’s significant and it just shows you the position that they’re in and the room for them to not only invest in improving their business line, but also for expansion,” he said.

“As we said, the export market has exploded for them. So, we can imagine they will continue to grow out the business in the US market but also in the Caribbean region. They are in an excellent position,” he added.

In January, the analysts of Taking Stock had indicated that the manufacturing and distribution sector would be the one to watch as companies and customers continue to adapt to the ever-changing COVID-19 pandemic. 

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