Apr 2011 Financial News

Largest Carib rum manufacturer reports multimillion-dollar profit

Apr 13, 2011

Angostura Holdings Limited, one of the largest manufacturers of rum in the Caribbean, has reported net profit of TT$366.8 million for the financial year ended December 31, 2010, bouncing back from a loss position in the previous year.

Last year, the rum manufacturer grew sales by a marginal three per cent, but at the same time managed to keep costs down as it offloaded non-core asets.

Sales for the year 2010 totalled TT$620.9 million, compared to TT$603.5 million in 2009.

Other income also moved up significantly to TT$201.8 million, compared to TT$1.8 million the previous year, as a result of a write back of TT$161 million on a related party debt.

write back

There was also a write back of TT$13.6 million in excessive provision for advertising costs, as well as reported gains on the reversal of the related party debt.

In the meantime, the company also reported a reduction in all expense items for the period.

Selling and marketing costs went down to TT$95.8 million from TT$135.7 million. Administrative costs were reduced by TT$62 million while finance costs dropped by two per cent.

Since the collapse of CL Financial Angostura Holdings Limited, parent company to Jamaican spirit firm Lascelles DeMercado has been undergoing a reorganisation of its operation.

It has been under new management since then, which has charted a new strategic path for the company, focusing only on coreactivities.

US-based subsidiary

In December of 2009, the group sold its US-based subsidiary Angostura Spirits and Wines and reported that its only other non-core subsidiary, located in Canada, is also up for sale.

In its strategy to improve earnings, the company said it would focus more on core operating activity, the introduction of value-added rum brands, and improved utilisation of plant and equipment.

On balance sheet, total assets is now at TT$1 billion while its cash flow statement shows a slight reduction, moving to TT$114.5 million, down from TT$118.5 at the end of the year in 2009.


Source:
Jamaica Gleaner
Wednesday April 13, 2011

http://jamaica-gleaner.com/gleaner/20110413/business/business4.html