Ansa McAl Q1 profits take 72% covid19 hit

THE REGION'S biggest conglomerate, Ansa McAl, managed to maintain revenue for the first three months of 2020, but profits after tax took a 72 per cent hit as the company, like most others, manages its response to the covid19 pandemic.

"Across jurisdictions in which we operate, government-imposed stay-at-home restrictions have had and will continue to have a marked impact on the business environment and economic conditions," company chairman A Norman Sabga said in a statement.

The company's profit for the period was $44.6 million, compared to $157 million in the first quarter 2019. Revenue held fairly stable, falling just 0.2 per cent year-on-year to $1.49 billion. The results take into consideration the first two weeks of the shutdown in March.

Subsequent months will show a more pronounced decline due to the full effect of restricted economic activity, Sabga noted. He acknowledged that covid19affected profitability owing to the steep decline in financial investment portfolios.

Overall, Sabga noted, the group's financial condition is healthy, as capital and liquidity remain solid. Individually, each of the group's segments saw reduced revenues, except insurance and financial services, which reported total gross revenue of $312 million, up 12.5 per cent.

Gross revenue in the manufacturing segment was $626 million, down 1.3 per cent; automotive was $595 million, down 4.6 per cent; and media, retail, services and parent company gross revenue was $238.5 million, down 14 per cent.