Apr 2011 Financial News

Angostura shows strong performance

Apr 07, 2011

Angostura Holdings Limited has experienced one of its “strongest annual performance” with an after tax profit of $370.6 million.

In its audited financial results, chairman Gerald Yetming said the Group reported a 380 percent gain in 2010 when compared to restated net losses of $132.2 million in 2009.

He pointed out that a “healthy net profit position” of $359.6 million before tax was reported due to reductions of $39.9 million (29 percent) in selling and marketing costs and $62 million (38 percent) in administrative expenses.

Yetming credited the major improvement in profits as a reflection of the turnaround work done in 2010 to bring the Group back to solid profitability.

The group experienced a heavy loss of $1.3 billion in 2008 and further losses in 2009.

He said the Group’s performance was driven by demand growth of their flagship brands as well as improvements in operational efficiency at all points along the supply chain.

“Among the contributing factors to the turnaround are the re-imaging of our major brands, significant improvement of our production process through capital investments and re-focused expansion of our export Bitters business,” he said.

Yetming noted that 2010 net sales of Bitters amounted to $95.5 million compared to $46.3 million in 2009 while Bitters contribution grew by $38.1 million or 293,3 percent over that same period.

In addition the Bitters business accounted for improvements in their cash collections of $43 million in 2010.

The Group has now returned to a positive net equity position with an earnings per share of 58 cents compared to negative 43 cents in 2009.

Yetming indicated that trading of the Company’s shares on the Trinidad and Tobago Stock Exchange (TTSE) resumed effective February 14. The TTSE suspended trading in 2009 for the late filing of its 2008 accounts.

“Now that we have moved to a positive net equity position, the Board of Directors is even further committed to re-building more robust and sustainable retained earning reserves to return value to our shareholders,” he said.

Yetming said they look forward to a significant improvement in 2011 over 2010 as a result of the full year impact of the strategies implemented in 2010.


Source:
Newsday
Thursday April 7, 2011

http://www.newsday.co.tt/businessday/0,138498.html