Caribbean Producers Jamaica Limited (CPJ) has taken the decision to issue a preliminary disclosure of likely impairment to their net profit in the financial year ended June 30, 2016.
CPJ advises that the presence of unregulated players in the market continue to create an unequitable environment for the company to compete against products of questionable origin and repute. This has resulted in a review of the implications for CPJ’s business model and hence the following prudent management decisions will be made:
- A write-down of inventory that has become aged or obsolete that cannot be competitive against unregulated players;
- An increase in tax provision in anticipation of realignment changes to CPJ’s business model.
CPJ views these issues as material primarily for the Fiscal year ended June 2016 and anticipates the authorities will aggressively target the unregulated players. CPJ states however, that the new fiscal year will concentrate on rationalizing non-core businesses and a realignment to address the year-on-year increase in costs associated with their rapid growth and new investments while focusing on protecting their profitable lines of businesses.
