STERLING Products Limited has recorded positive gains in the first half of the financial year, registering an after-tax profit of $63 million, which signals a significant improvement in the company’s performance when compared with the corresponding period last year.

According to the institution’s audited financial statements, which were published on Friday, the recorded profit represents an increase of $6.1 million, since the company recorded a $56.9 million profit for the same period last year.

It was reported that profit before tax was recorded at $90.0 million, showing an increase of $8.7 million or 10.7 per cent over the corresponding period for the year 2021.
Company Chairman, Andrew M.F Pollard, S.C., said that, during the first half of the year, Sterling saw an appreciable increase in its cost of production due mainly to price increases for vegetable oils and fuel costs on international markets; this affected its gross profit margin significantly.

“We have seen the financial effects of these increases during the reporting period. On the other hand, there is also a definite increase in demand for the company’s products, which is the result of focused marketing efforts and the diversification of the company’s product lines,” Pollard said.

The company recorded a $366.4 million “turnover” or net sales, which reflects a 19.7 per cent increase over the corresponding period of 2021. Expenses for the period totalled $525.8 million, an increase of $24.5 million over the corresponding period last year.

“The main reasons for the increase are employment costs, marketing and distribution expenses, depreciation and maintenance expenses. The company continues to be vigilant to control expenses companywide,” Pollard said.