Angostura Holdings Ltd has recorded a decline in revenue for the first quarter of 2019 due to significant challenges in its supply and distribution system. In a two-page advertisement in the daily papers on Wednesday, chairman Terrence Bharath said revenue declined by $25 million over the same period for 2018, with the company’s two main segments – local rum and bitters – down by $4.2 million and $16.5 million respectively.
He noted, however, that the 2018 first-quarter revenue included delayed exports sales of bitters to the US and Australia of $9 million. Bharath said this was also the case for the Easter rum sales as only sales for the Carnival period were recorded in the 2019 revenue.
He said significant challenges to its supply and distribution system were also partially responsible for the decline in first-quarter revenue.“The company anticipates increased revenues given that these challenges are being rectified and the foreign segments of our business continue to be strong and stable," he said.
The group’s cost of goods was “relatively stable,” with a minimal increase of two per cent or $1.5 million for the corresponding period. He noted, however, that it stringently managed its operating expenses, which resulted in a reduction of expenses by $2.3 million, or 4.6 per cent. He said these measures resulted in the group recording a before-tax profit of $17.9 million.