Ansa McAl reports operating profit of $752m

DESPITE the economic challenges posed by the covid19 pandemic, the Ansa McAl Group was able to record a healthy operating profit of $752 million and an operating cash flow of $1.165 billion. In 2019, its operating profit and operating cash flow were $1.066 billion and $589 million respectively.

Group chairman A Norman Sabga made these observations at a virtual stockbrokers meeting to announce the group's financial results for the year ended December 31, 2020.

Sabga observed, "Although our profits are less than what they were a year before, our cash reserves have grown significantly. This augurs well for future growth and possible acquisitions." In 2019, the group reported profit before taxation of $1.036 billion compared to $723 million last year. The group's net cash flow from its operations last year was $917 million compared to $1.008 billion in 2019.

Sabga was pleased that the group was able to maintain profitability over all four quarters in 2020. He observed the virtual stockbrokers' meeting was an example of how the group has learnt "how to operate in this very difficult environment." He added, "We have set the ground for future growth."

Group CEO Anthony Sabga III said the group faced challenges across all of its divisions. He cited its breweries in OECS countries being closed for three months because of covid19 protocols, decline in new vehicle sales and reduced marketing budgets for its media group as examples.

Guardian Media reported a before-tax profit of $7 million compared to a $7.1 million loss in 2019. But Guardian Media saw its revenues decline by $9.7 million in 2020, falling from $120.3 million in 2019 to $110.6 million last year.

Sabga III observed that revenues decreased in the group's markets in Trinidad and Tobago, Barbados, Guyana, St Kitts and Nevis and Grenada by 11.5, 4.7, 4.7, 13.9 and 9.1 per cent respectively from 2019 to 2020. Last year, the revenues that Ansa McAl received from each of these markets were $4,354, $877, $288, $86 and $158 million respectively.

Notwithstanding these challenges, Sabga III said the group was pleased with its acquisition of the Bank of Baroda in December 2019. Through this acquisition, Sabga III said the group "has welcomed into the portfolio, the advent of commercial banking."

He declared, "This is a hugely transformational and aspirational intention which we finally realised. It's something we are quite motivated around, the future of which we are motivated around." Sabga added, "We intend to build a substantial bank and a substantial financial institution in the next five to ten years. So that's our horizon." He explained the group does everything with a long term view. Sabga also hinted the group is involved in an overseas joint venture.

Sabga III continued, "We continue to manage a very exciting management pipeline and retooling pipeline."

Also, the senior Sabga added, "We are much more nimble. We're much more attuned to the new reality and we look forward to what this year will bring."