Restructuring costs keep profit flat for Trinidad’s Ansa McAl Group

Berger Paints, a subsidiary of the Ansa McAl Group of Companies, has operations in Barbados, Jamaica and Trinidad and Tobago.

Ansa McAl Group reported revenues of TT$4.7 billion for nine months ended September 30, 2019. This reflects an improvement of four per cent or TT$165 million over recorded in 2018.

When compared to the same quarter last year, revenues for the third-quarter 2019 rose by TT$124 million or 7.7 per cent to $1.62 billion.

In a statement attached to the group’s unaudited results for the third quarter, Chairman A Norman Sagba informed that the Ansa McAl’s “profit margins were preserved” due to adjustments for “one-off restructuring costs”.

“Profit after tax (PAT) was [TT]$442 million and included restructuring cost of TT$25 million (as previously reported). Without the one-off restructuring costs, the group’s PAT increased by three per cent over the prior year ([TT)$455 million —2018),” the statement continued.

Ansa McAl Group of Companies Executive Chairman A Norman Sagba

As it stands, however, profit after tax declined by three per cent for the nine-month period ended September 30, 2019. Meanwhile, profits for the quarter reached TT$139 million, an increase of TT$7 million or five per cent over the three-month period in the year prior.

“This growth was achieved through three of the group’s four segments. Manufacturing, packaging and beverage grew by four per cent; financial services increased 24 per cent; media, retail, services and parent company grew by three per cent,” Sagba pointed out.

Despite a decrease in cash and cash equivalents of TT$519 million, total assets reached TT$15.4 billion.

“Our focus is on the fourth quarter,” Sagba noted, “which is the peak of trading for the group. We are also well placed for continued growth; all our subsidiaries have completed their planning for 2020 and have already initiated their respective strategies.”