Angostura reports $145.6m profit in pandemic

THROUGH what it describes as strategies guided by innovation and strategic profitability during the covid19 pandemic, the Angostura Group was able to achieve a group profit after tax of $145.6 million for the fiscal year ended December 31, 2020. This was a 2.1 per cent increase on the amount achieved in the previous fiscal year.

The group was also proud to have supported the government's efforts to curb the effects of the pandemic in TT and keep the population safe through a series of initiatives.

Angostura Group chairman Terrence Bharath made those observations in the presentation of the group's summary consolidated financial statements for the year ended December 31, 2020.

Bharath said the group achieved revenue growth of $58.2 million or 6.9 per cent due primarily to the performance of the local market which contributed 70 per cent of overall sales and grew by 10.7 per cent or $61.1 million last year.

"The local rum segment contributed 93.8 per cent of total revenue growth, as increased purchasing via supermarkets and wholesalers compensated for the closure of bars and restaurants arising from the restrictions associated with the covid19 pandemic."

Bharath said, " Innovation in 2020 amid the global pandemic, led by the incomparable Angostura Cocoa Bitters, resulted in revenue growth of 32 per cent in the US market, our second largest market."

He said Cocoa Bitters was listed in over 1,000 Walmart stores across the US.

"The overall Bitters segment grew by 19.3 per cent ($34.5 million) as Cocoa Bitters boosted the brand and contributed to the soaring of at-home cocktail consumption in major international markets."

Bharath said the group continued its marketing spend on strategic protects as it viewed continued investment in lucrative markets and brands as essential to its sustained long-term growth.

"Notwithstanding this, savings in selling and marketng expenditure of $4.9 million or 3.5 per cent due to the closure of the on-site consumption segment shortly after Carnival 2019, resulted from reduction in in-house promotions.

He also said marginal savings in selling and administrative expenses, together with an increase in interest income of $4.1 million or 47 per cent, resulted in a reported profit before tax of $212.7 million. Bharath explained this represented an increase of $13.6 million or 6.8 per cent period over prior period in 2019.

"Above all, in the face of the global pandemic, we sought to remain dynamic, to innovate and at the same time enhance and modernise our waste water treatment plant by being environmentally conscious."

Bharath said the group developed and donated a "top-of-the-line" hand sanitiser to actively support the health protocols implemented to help fight covid19.

Against this background, Bharath said Angostura's board of directors were pleased to recommend a final dividend of $0.30 per share for the year ended December 31, 2020, with a payment date of September 21 and record date of September 3.

He added the proposed dividend represents represent a 15.4 per cent increase over the 2019 total dividend declared (2019: $0.26 per share) and earnings per share of $0.71 (2019: $0.69).