Massy makes $743m profit for 2020 in midst of pandemic

The Massy Group’s strategic decision in 2019 to shift its model from a traditional conglomerate to an investment holding/management company proved to be effective, as the company recorded a $743 million profit after tax for the 2020 financial year (ended September 30).

That’s a 21 per cent improvement over last year’s $613 million – despite the general economic uncertainty brought on by the coronavirus pandemic for much of the year.

In his report to shareholders in the company’s annual report, posted on the group’s website on Thursday, chairman Robert Bermudez said the group had “demonstrated tremendous resilience with this difficult environment...in spite of uncertainties and interruptions to business operations.

“Our companies have been exemplary in swiftly implementing strict health and safety protocols, in rapidly pivoting to embrace remote working, and adopting new technologies to enhance both the customer and the employee experience,” he said.

All three of Massy’s main portfolios – integrated retail, gas products and motors and machines – grew, he said. The group also benefited from a gain on the sale of Massy Technologies for $272 million to PBS Technology Group Ltd, a subsidiary of Jamaican conglomerate the Musson Group.

Bermudez noted that the economic outlook in several territories in which the group operates continues to be difficult, but Massy remains well-positioned in its key areas of focus.

In TT, weak natural gas prices and declining production were a projected challenge, while in Barbados, the group was concerned about declines in tourism and tourism-related businesses. Guyana and Colombia posed potential opportunities, with the transformational economic impact oil (the first exports shipped in January 2020) in the former, while investor-friendly, pro-growth economic policies in the latter have boosted confidence in that economy.

In his statement to shareholders, group CEO Gervase Warner said weeks before the onset of the pandemic in the region, Massy had already started internal discussions about its response to the inevitable arrival.

“We decided that the Massy Group would do whatever it could to be a beacon of safety and reliability, as we recognised that people would need to continue to access basic necessities in a trusted environment. If there was ever a time that demonstrated that the ‘power is in the people’ it was 2020,” he said.

Massy moved very early to establish protocols in its front-line businesses, he said, to manage risks to employees and customers.

“We are proud of our role in securing food supply to all of the territories in which our integrated retail business (including supermarket chain, Massy Stores) operates.

"We are proud of the work of our gas products organisations in ensuring oxygen supply to hospitals as new and temporary facilities were opened to cope with rising patient numbers. We are proud of our ability to support consumers and restaurants with cooking gas to prepare food for people on lock-down,” he said.

Mostly, he said, the group was proud of the “proactive and dedicated work” of its employees, many of whom were designated front-line workers. “Our group’s handling of the covid19 pandemic is a testament to years of preparation and the collective strength of our leaders and employees,” Warner said.

Other lockdown innovations included remote working, which was quickly embraced across the group, leading to some rationalisation of office space, he added. New technologies and innovations were rolled out “at speeds before thought unimaginable” to respond to the need to operate and serve customers differently; and strict health and safety protocols and infrastructure were also swiftly implemented.

The group also stepped up its charitable donations, including meals to frontline workers, collaboration with regional governments on food supply and covid19 testing issues, as well as hampers to needy families.

“We are grateful for the trust and confidence that the consuming public has placed in us,” Warner said.