Hamilton (Bermuda): Devonshire Industries Ltd, the holding company of Bermuda Paint Company, reported a sharp decline in half-year net income on Monday, flagging headwinds for the island’s small paint manufacturing sector.
For the six months ending September 30, the company’s net profit stood at $106,353, down 50.6% from the corresponding period in the previous year, according to a filing with the Bermuda Stock Exchange. Earnings from continuing operations were $99,055, a 52.9% drop compared with the same six-month span in 2024.
Net sales fell 9.63% to $1.46 million, reflecting softer demand and a modest contraction in paint volumes or pricing pressures, the results showed. At the same time, operational costs climbed 9.03% to $538,078, squeezing margins further amid an inflationary cost backdrop.
The result marks a stark reversal from Devonshire’s performance last year, when the company posted stronger interim earnings amid more favourable sales and cost dynamics.
Market watchers noted that smaller specialty manufacturers often face amplified cost pressures from volatile raw material prices — particularly oils and pigments — and limited pricing power compared with larger regional competitors, trends evident in other parts of the global paints segment.
Devonshire did not immediately comment on strategic adjustments in response to the weaker set of results, including potential pricing, distribution, or cost-containment measures going into the second half of the fiscal year. The company’s shares have traded thinly on the Bermuda Stock Exchange, where liquidity and analyst coverage are limited.
Industry analysts say that while short-term earnings swings reflect operational headwinds, long-term prospects hinge on broader construction and renovation demand in local markets and the company’s ability to manage input costs.