Chairman of ANSA McAL Group A. Norman Sabga on Thursday announced that younger brother Andrew has been appointed the new Chief Executive Officer (CEO) of the group during a media conference at the TATIL Building, Maraval Road.
The substantive part of the conference dealt with the Group’s results for the six months ended June 30. Chairman Sabga said the Group’s performance reflects why conglomerates tend to do better during economic downturns than individual businesses.
“We believe our existing businesses have performed well in this economy. (That’s) the benefit of being a conglomerate.
“We’re able to weather the storm in certain areas.”
Providing details of unaudited results for the first and second quarters of 2017, Sabga said, “Group revenues improved by 2.38 per cent with revenues from Trinidad and Tobago (TT) growing by 1.66 per cent whilst our overseas operations recorded combined revenue growth of 4.8 per cent.”
“These numbers exclude the discontinued operations in 2016 which contributed $55 million in revenue in the prior year.
“Including the effects of discontinued operations, the Group reported revenue increase by $12 million to $2,899 million ($2,887 million in 2016).”
Profit before tax (PBT) generated was $432 million ($461 million in 2016), was down six per cent over the same period last year.
The group also recorded one-off acquisition costs for Berger Paints and recorded declines in the Automotive, Trading and Distribution segment due to contraction in market for new vehicles. “Media, Services and parent revenues declined due to a reduction in corporate advertising income but we are confident of recovery.
“Guardian Media Limited has already recovered from its first-quarter loss position and has published a small PBT in the second quarter.
“In Automotive, our strong inventory position and the new vehicle line-up in Q4 (fourth quarter) will help boost sales. Net assets grew by 6.9 per cent as profits continue to be reinvested for future growth,” Sabga stated.
An interim dividend of $0.30 per share ($0.30 in 2016) has been approved by the board and will be paid on November.
Applause broke out when the chairman announced that the board had, earlier that day, appointed Andrew Sabga as Group CEO.
“We did something that was very important this morning. We appointed a new CEO to the Group and I’m happy to announce that Andrew Sabga is now CEO of the ANSA McAl Group. So there’s new energy, new blood, new ideas, new drive, new determination to improve upon what we have,” Sabga declared.
The elder Sabga served as CEO since 1996 when he succeeded his father, the late chairman Emeritus Anthony N Sabga.
In 2000, Norman was appointed group chairman, which meant he held the dual post of CEO and chairman for more than 16 years.