Aug 2016 Financial News

ANSA McAL declares $353m profit

Aug 12, 2016

The ANSA McAL group yesterday declared after-tax profit of $352.8 million for the first six months of this year, an increase of less than 1 per cent compared with the same period in 2015.

The group's unaudited results described these results as a modest improvement over 2015.

Revenues increased by $16 million to $2.88 billion while the Earnings Per Share (EPS) improved by 1.7 per cent to $1.78 for 2016 compared with $1.75 in 2015.

Chairman of ANSA McAL, Norman Sabga, attributed the group's positive results despite "contracted market activity" to its conglomerate model.

"I always talk about the conglomerate model and the resiliency and being in so many different areas and the balancing act of one sector being up and the other being down. It has worked well for us. Not everybody has the ability to manage multiple organisations in multiple disciplines in different jurisdictions," he said speaking yesterday on the 10th Floor of the Tatil Building in Port-of-Spain.

Speaking about the group’s brewery acquisition in Florida, he said it has been a success.

"The Florida Indian Beer River Brewery Company is the third largest brewery in Florida. In the month we have been in operation we have already seen a significant improvement in the results of that organisation. We thought it would have taken three to four months to put things in place but within a month our managing director has been able to do the basics. That was all it took to turn it around. That is a particular transaction that we are excited about. That makes four breweries in the group," he said.

He would not say how much the acquisition cost.

In the automotive sector, he said ANSA McAL has been in the "unfortunate position" where two of its suppliers could not supply resulting in late supplies that affected the sector's performance.

In the media sector, Sabga said it is not performing as the group wishes, but it is being overhauled for future growth.

"It is not great but we are in a restructuring programme. We are reorganising. I am proud of the talent we have there," he said.

On the issue of a depreciation of the TT dollar, he said it would be positive for manufacturers.

"I believe that the Finance Minister said he would defend the exchange rate at $6.83 to US$1 so we are not there as yet but he would defend it at that level.

“They have demonstrated that they will defend it. At some stage there may be slippage when they think that it is convenient to get to that level. I do not see further slippage in the short term. Would a devaluation help manufacturing? The answer would be yes, but it would affect trade. One would go up and one would come down," Sabga said.

Source:
Rapheal John-Lall
Trinidad Guardian
Friday August 12, 2016

http://www.guardian.co.tt/business/2016-08-12/ansa-mcal-declares-353m-profit