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Massy posts solid first quarter as Guyana leads group performance

Even with the disposal of several subsidiaries and continued alignment on investment portfolio management, Trinidad-based Massy Holdings Limited posted a 1.4 per cent increase in third party revenue (TPR) to TT $3.21 billion and profit attributable to shareholders coming out 13 per cent higher at TT $173.5 million for the quarter ending December 31, 2020.

As the group continues to operate under a muted COVID-19 environment in several countries, its integrated retail (IR), gas products (GP) and motors and machines (MM) grew TPR to new quarterly records as more consumers demand the products from these segments while remaining at home.

This was most notably in Guyana which saw a TPR growth of 10 per cent to TT $147.3 million ahead of the other operating countries which recorded declines excluding Colombia which grew.

Operating profit climbed by 19 per cent to TT $264.1 million with share of results from associates and joint ventures declining by 38 per cent due to timing of expenses for the Caribbean Industrial Gases Unlimited plant and reduced activity of Massy Woods.

This figure is expected to decline in the upcoming quarter following the sale of its 50.5 per cent stake in Robert’s Manufacturing Limited to Proven Investments Limited for US $21.5 million (TT $145.6 million) which is slightly below the TT $176.2 million (US $26 million) recorded as net assets at the end of September 2020.

Profit before taxation (PBT) grew by 13 per cent to TT $281.2 million mainly due to Guyana and Colombia’s performance in the period with the former’s PBT rising by 38 per cent to TT $50.4 million. The Jamaican segment had a slight 3 per cent increase to TT $14.9 million ($330.4 million) with the other segments growing in the period except for Trinidad and Tobago. Even with a higher income tax expense, profit attributable to shareholders came out stronger with earnings per share standing at TT $1.76 versus TT $1.57.

Total assets fell by 3 per cent to TT $12.8 billion primarily from a sharp decline in property plant and equipment which fell to TT $2.6 billion. Total liabilities declined by 13 per cent to TT $6.2 billion while equity attributable to shareholders rose by 9 per cent TT $6.4 billion.

“Although the vaccines have begun to be rolled out in developed countries, we recognise it will take more time to get to many of the countries in our region at the scale needed to dramatically change the current operating paradigm. The group will continue to do its part to assist the countries in which we operate through securing food, pharmaceutical products, cooking and industrial gas, and transportation and construction equipment supply during these uncertain times,” said chairman of Massy Holdings Robert Bermudez in the company’s first-quarter report.