Bermuda Paint Company parent’s profits fall 74%
Devonshire Industries, the parent company of Bermuda Paint Co, reported a 74 per cent fall in annual profit as sales volumes dropped across several core product lines.
The Bermuda Stock Exchange-listed company made net income of $82,399 for the year ended March 31, compared with $320,830 a year earlier.
Revenue fell 12 per cent to $2.6 million, from $2.95 million in the previous financial year, according to the company’s audited financial statements.
Jacob Hocking, the company president, described fiscal 2026 as “a difficult year” for Devonshire Industries.
He said the main challenge was falling sales across several core product lines, which management said was partly due to weather patterns, construction project delays, weaker customer sentiment and more competition.
Sales volumes declined by about 17.4 per cent, with manufactured paint, Truefoam and Thoroseal recording the largest falls, according to the president’s report.
Higher average selling prices helped to offset some of the lost volume. However, gross profit fell to $1.12 million from $1.31 million, while the gross margin narrowed to 43.2 per cent from 44.4 per cent.
Operating expenses rose to $1.05 million from $1.01 million. The increase reflected higher insurance, employee-related, marketing and administrative costs, the company said.
Despite the lower earnings, Devonshire Industries generated more cash from operations. Net cash from operating activities rose to $277,484 from $216,137, helped by lower inventory levels.
Inventory fell to $1.07 million at the end of March, compared with $1.37 million a year earlier. Cash rose slightly to $527,028, while total current liabilities fell to $136,155 from $240,912.
The company invested $52,795 in property, plant and equipment during the year, compared with $116,472 in the previous year.
Devonshire Industries also kept its annual dividend at 50 cents per common share, for a total declared dividend of $220,688. The payment was more than the year’s net income and contributed to shareholders’ equity falling to $2.23 million from $2.37 million.
Mr Hocking said the company’s focus for the financial year would be making a swing back to profitable sales growth while being disciplined financially.
“Management will focus on rebuilding volumes in key product categories — particularly manufactured paint, Truefoam and Thoroseal — while preserving recent pricing gains,” he said.
He added that Devonshire Industries wants to strengthen customer relationships, improve its market penetration and keep its products competitive, while controlling operating costs, inventory and receivables.
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