PBS posts profit drop after US$6-million Costa Rica charges

Productive Business Solutions Ltd (PBS), a regional technology distributor listed on the Jamaica Stock Exchange, reported a 36 per cent decline in full-year profit after absorbing more than US$6 million in costs tied to its Costa Rica operations.

The Kingston-based company, which operates in 24 countries, posted US$4.8-million profit for 2025, down from US$7.6 million the prior year, according to unaudited results released on Tuesday. The Costa Rica losses struck in two waves during the fourth quarter — a US$1.3-million operating charge and a separate US$4.9-million write-off, wiping out what Chairman Paul B. Scott described as an otherwise strong quarter.

“Excluding this item, the quarter would have generated solid net profitability aligned with the strength of our underlying operations,” Scott wrote in his letter to shareholders. The company said normalised EBITDA would have reached approximately $17.6 million in the quarter versus the reported $16.3 million. EBITDA is a key operational metric that measures earnings before interest, taxation, depreciation, and amortisation.

PBS, which operates across the Caribbean and Central America, supplies Xerox and other technology products, as well as managed services, to enterprise and government clients.

Costa Rica houses one of PBS’s key Central American hubs, but accounting irregularities uncovered over a year ago at the subsidiary contributed to a sharp capital decline for the group in 2023 to US$77.6 million from US$106 million in 2022. The fallout led to an internal audit, job losses, and management changes in Costa Rica. Group capital stood at US$76.1 million in December 2025, down from US$82.4 million a year earlier.

Dividends contributed somewhat to the latest dip in capital, with US$11.2 million distributed in the year, up from US$1.3 million in 2024. Scott attributed the jump to “timing” rather than a policy shift, explaining that dividends declared for 2024 were paid during 2025.

The company’s core operations showed resilience. Revenue slipped 3.0 per cent to US$375.9 million, but gross profit climbed 10.1 per cent to US$126 million as PBS shifted toward higher-margin managed services and shed lower-margin business lines. EBITDA rose 8.8 per cent to US$55.3 million. Fourth-quarter revenue jumped 12.6 per cent to US$111.7 million.

Total borrowings stood at US$186 million at year end, up from US$160.6 million in 2024, while cash fell to US$21 million from US$30 million. Basic earnings per share dropped to 2.52 cents from 3.31 cents.

“As we enter 2026, PBS group is operationally stronger,” stated the preface to financials signed by CEO Pedro Paris and Scott. “We expect to benefit from a healthier gross margin profile, expanded recurring revenue streams, improved EBITDA generation, and strengthened regional coordination.”

business@gleanerjm.com