Feb 2015 Financial News

Smarting from Trimart delay

Feb 25, 2015

A regional conglomerate which owns several companies in Barbados is being warned that its earnings here will be hurt by the delayed construction of its Trimart Supermarkets flagship store.

In a new analysis of ANSA McAL Limited’s operations, investment firm Jamaica Money Market Brokers (JMMB) concluded that “with lower than planned economic growth expected in 2015 for Trinidad and Tobago, and general concerns surrounding the Barbadian economy, the company could produce a similar performance to 2014 in 2015”.

ANSA reported a seven per cent decline in its net earnings for the nine months ended September last year, compared to the same period in 2013. Net earnings dropped from TT$524.89 million to TT$488.23 million.

JMMB was concerned about the impact the delayed construction of the new multi-million dollar Trimart would have on the Trinidad and Tobago-based company’s bottom line. Construction of the new supermarket was announced more than a year ago.

“From the Barbados standpoint, the reopening of its Trimart flagship supermarket store has been delayed due to the pending regulatory approvals. This delay coupled with the recessionary impact on Barbadian consumers, [means] the earnings from this territory should be challenged,” it said.

Late last year ANSA chairman A. Norman Sabga voiced concern that delays with the necessary “regulatory approvals” had “negatively impacted revenue growth and profitability in the retail sector”, although he said the company was “confident of recovery and continued to invest in the businesses” in Barbados.

ANSA had announced that the main Trimart outlet, which previously operated at Haggatt Hall, would be re-established at “new premises owned by parent company ANSA McAL (Barbados) Ltd.”

ANSA Barbados chief executive officer and president Nicholas Mouttet, who is also Trimart chairman, said previously: “What we are actually doing is reinvesting millions of dollars in Barbados by building a world-class supermarket on one of our own properties

“However, we need to complete the approval process before announcing further details of the new location and when it will be up and running.”

In addition to Trinidad and Tobago and Barbados, ANSA has subsidiaries in St Kitts and Nevis, St Lucia, Guyana, Grenada, and the United States. (SC)

Source:
SC
Nation News
Wednesday February 25, 2015

http://www.nationnews.com/nationnews/news/63965/smarting-trimart-delay