Apr 2014 Financial News

ANSA McAL’s diversity is its strength—Sabga

Apr 03, 2014

The ANSA McAL Groups’s record profits of more than $1 billion shows its diverse sectors are in a strong position, said Gerry Brooks, chief operating officer of the ANSA McAL Group.

“We are in a strong cash position, good capacity. Many of our investments leave us in a good position strategically and competitively to be able to replicate earnings on a day by day, month by month, quarter by quarter basis. We think our businesses are well positioned in each sector for 2014 and the future and beyond,” he said.

Brooks spoke last Thursday at the results of the 2013 year end audited financial results at Tatil Building, Maraval Road, St Clair.

Norman Sabga, chairman of the ANSA McAL Group, gave indicators of the performance.

“Our revenues are up six per cent, and for the first time in the history of the group, we have made over $1 billion in profit and this is a landmark. Our profit before tax increased by 21 per cent to $1.14 billion and revenues improved to $6.2 billion,” he said.

According to the chairman's statement, earnings per share (EPS) improved by 17 per cent to $4.31 up from $3.67 in the prior year.

Aneal Maharaj, group finance director, who was present at the AGM, drew some examples of why the Group has done so well.

“We have eight sectors with 13 business lines and the financial sector and Guardian Media Ltd have done remarkably well. The automotive sector has performed beyond our expectation. All of the geographical territories have done well. Guyana has done well. In Barbados, our business has continued to struggle because of the sluggish economy. However, we have confidence that the growth will return. So the growth is coming from the financial sector, the media and the automotive sector. In many of the distribution companies, there has been growth as well,” he said.

Nicholas Mouttet, president and CEO, ANSA McAL Barbados, said despite tough economic conditions in Barbados, they have managed to survive there.

“Barbados is facing difficult times and despite this, over the last couple years, we have been doing quite a bit of restructuring. We have been reducing our operating costs in Barbados and our profits are actually up year-on-year and the debt is reducing. But we do have significant plans ahead and we want to reinvest there and grow our business. It is a challenging environment, but we are doing well, relative to the conditions there,” he said.

“In addition in Barbados, we actually closed our flagship supermarket and we are going to open at a next location. I do not want to announce the location now. There we will have greater efficiencies and cost that we have taken out of the operation. We continue to exist in our existing operations,” Mouttet said.

The Group is doing better in St Kitts.

“They have a better results, like in Guyana. But St Kitts is smaller because of the operation. In Guyana, the land there could not sustain the planting of sugar cane. The types of soil was clay soil and could not yield the quantity of sugar and so we could not proceed with that project,” Sabga said.

Brooks said it is “a moment of pride” the Group has recorded such a significant profit.

“We have made significant investments in the manufacturing sector. Our $400 million block plant we were able in 2013 to sell our first set of blocks, commission the plant and bring the plant into operation. That leaves us in a good position to service the local market and to service the regional market. We were also able to integrate the Sissons plant, so that plant is well positioned to do well in 2014. In 2013, the plant had its best year ever,” he said.

Sabga said the manufacturing sector has acquired a quarry and is now awaiting a license from the ministry.

“That is going to assist us in our block manufacturing significantly. There is also the TK4 operations, which will change the clay block operations in this country in terms of the quality.

This is going to be at a standard that no other block would be and the strength of the block. The weight will be less than others. That is a huge benefit,” he said.

Brooks spoke about the chemical aspect of the Group's business.

“In the chemical business, we have expanded the plant by 20 per cent and positions us in 2014 to deal geographically with new markets. Our water treatment is doing extremely well. We are in a partnership with the US-based billion- dollar Danaher Group and it leaves us well positioned from a chemical standpoint,” he said.

Brooks said the auto sector is doing well.

“Our auto businesses did extremely well. Customers have been extremely enthusiastic about the new brands. We made significant investment in our online media, properties we acquired and the radio stations. Applications both on iPad and Android leave us well positioned to play in the media sector. We have also seen results in the financial services sector and we have strengthened capacity there. Our people's skills are also important in that sector,” he said.

Sabga added that a new showroom will be opened in Chaguanas.

“The new Ford facility that is state of the art will be opened in April. That is going be one of the nicest and one of the most modern automotive facilities. In addition, we have made a decision to open an automotive facility in Chaguanas on the highway for all our brands and that will give us even more visibility and paces us even better in .the marketplace,” Sabga said.

Theresa White, Group human resources director, speaking at the A, said the cornerstone of the ANSA McAL Group is its employees and human resources, which have helped the Group’s profits to grow.

“It is simple that performance is important. Governance is important to us. We also plan for the future and develop leaders. That is the heart of our brand,” she said.

She said there are 19 persons doing an MBA at the mid-level managerial level in the Group.

There are also four managing directors of the Group who will be going to Harvard University for special courses and training.

“There are a lot of executives that thrive and enjoy working in ANSA McAL because there is a level of freedom to do what is required and a level of reward. It is a culture we try to cultivate. We try to be gender neutral, we try to be race neutral. We tend to judge people on their ability other than any pre-conceived notions. At the same time, we realised we are not the most perfect place for everyone, but those that work here are happy to be here,” he said.

“Today when we put out an ad, the amount of people that apply for positions is amazing. This is an indication that we must be doing something good. A lot of highly talented people are applying to the Group. There is a lot going on in terms of cultivating entrepreneurship, drive, creativity and talent in the Group,” Sabga said.


Source:
RAPHAEL JOHN_LALL
raphael.lall@guardian.co.tt
Business Guardian
APRIL 2014 • WEEK ONE www.guardian.co.tt BUSINESS GUARDIAN, Page BG6 and BG7