The West India Biscuit Company Limited’s (WIBISCO) profitability has declined following what its chairman Chloe Bermudez has called a difficult year impacted by “significant operational challenges”.
WIBISCO’s main operational problem in 2025 was advanced packaging equipment taking four months to be commissioned and optimised instead of the originally estimated one month.
Bermudez also reported that the regional food manufacturing sector “faced headwinds during the year, including supply chain disruptions, inflationary pressures on raw materials, and heightened competition across Caribbean markets”.
Her report to shareholders accompanied the biscuit manufacturer’s condensed financial statements for the fiscal year ended August 31.
“WIBISCO’s sales showed an improvement of 4.7 per cent over the prior year. Gross profit, however, fell by $528 000 year-on-year, and net income declined $808 000 to $9.3 million versus $10.2 million in the prior year,” the chairman said.
“The company faced significant operational challenges during financial year 2025, and while the results are not as we would like, the management has now overcome these hurdles and anticipates a return to growth in net income in financial year 2026.”
The chairman said that WIBISCO installed and commissioned advanced packaging equipment on its cookie production line during the year and this turned out to be much more challenging that originally expected.
“What was initially projected as a four week period for commissioning and optimisation was extended to 16 weeks, due to technical complexities in integrating the new equipment with existing production systems and longer than anticipated fine tuning requirements to achieve target specifications,” Bermudez explained.
“This delay directly impacted revenue and profitability in two ways. First, reduced production capacity during the extended commissioning period limited our ability to meet strong market demand, particularly during peak seasonal periods.
“Secondly, the equipment operated at sub-optimal efficiency during the learning curve period, resulting in higher unit costs and production waste.”
She said management’s response to these challenges “has been comprehensive and decisive. The equipment is now fully operational and producing at design specifications, with line efficiency exceeding pre-upgrade levels”.
“They have implemented enhanced project management protocols for future capital investments to ensure more accurate timeline projections and better risk mitigation. Their technical team has completed comprehensive training on the new equipment, positioning us to capture the full efficiency benefits in the year ahead,” the chairman shared.
Bermudez also told shareholders that despite a challenging year for the regional food manufacturing sector, the company “maintained its market leadership position through brand strength, product quality, and operational resilience”.
“Our strategic investments in equipment modernisation, while temporarily constraining production capacity, positions us for enhanced efficiency and scalability in the years ahead. These short term operational challenges should be viewed within the context of building long term competitive advantage,” she stated.
The official said that in October WIBISCO successfully completed its FSSC 22000 re-certification, which “validates our comprehensive approach to food safety, from raw material sourcing through manufacturing, packaging, and distribution”.
This certification “provides competitive advantage in both domestic and export markets, particularly as international buyers increasingly require rigorous food safety credentials from suppliers”, Bermudez added.
While the past year presented operational challenges that constrained WIBISCO’s financial performance, she said officials were confident about the company’s competitive position and growth trajectory in the 2026 fiscal year which began on September 1.
“Our upgraded production capabilities, strong brand portfolio, robust balance sheet and experienced management team position us well to capitalise on market opportunities and deliver improved results. Therefore, in recognition of shareholder value, the board of directors has approved a final dividend of 75 cents per share,” Bermudez announced. (SC)
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