Ansa McAl boasts of pre-pandemic level profits

CONGLOMERATE Ansa McAl Group on Thursday boasted of pre-pandemic type profits and projects continued success as the world relaxes covid19 restrictions.

Speaking at a virtual stockholders meeting, group CEO Anthony Norman Sabga III said proficient leadership and committed staff led to $5.970 billion in revenue with a profit before tax of $935 million. Profit after tax was $595 million.

In comparison, in 2019 the conglomerate which operates in the US and Caribbean had a revenue of $6.593 billion with a profit before tax of $1.036 billion and an after tax profit of $645 million. The 2020 revenue was $5.919 billion with a before tax profit of $723 million and after tax profit of $423 million.

Sabga said 2021 was tougher than 2020 saying the conglomerate faced challenges in last year that it had not anticipated after the first year in the pandemic.

Asked then how the company improved its performance and achieved pre-pandemic profitability, Sabga said, “We did enjoy a fairly favourable global investment environment which helped our results.

"We remained steadfast despite the challenges, kept our head and our leaders’ head in the game and supporting our people who are in support of our customers. Added to that, proficient leadership and the continued application of our business principles unwaveringly so, is what makes our success and what informs our confidence.”

The most profitable sector for the conglomerate was construction, manufacturing, packaging and brewing which raked in 42 per cent of its revenue, with the least profitable being its media market generating six per cent of their profit. Automotive, trading and distribution earned 24 per cent and the banking and insurance contributed to 18 per cent of the conglomerate's earnings.

To continue its profitability in the insurance market, the group of companies, which already boasts of two insurance companies in Trinidad and Tobago, is in the final stages of acquiring Colfire Insurance Company.

Chief Financial Officer Nicholas Jackman said: “The banking and insurance was really the jewel this year in terms of profitability (with) $371 million in profits coming out of that segment surpassing our construction, manufacturing, packaging and brewing segment.

"Our life insurance business saw a substantial increase in investment realise gains in local and foreign investments in 2021. General insurance also had a report in growth.”

He added, despite restrictions impacting its exports, the company was able to shift intra-regionally to maintain its commitments.

While TT and Barbados remained the overall top earners in the seven countries the company operates, Grenada and Jamaica outperformed all others in the construction sector, owing to those countries ramped-up construction mandates.

Sabga said the 140-year-old conglomerate believed in sustainability and that was why it focused on renewable energy and recycling. He added that, for the company, sustainability was not just a catchphrase as the company could be counted on to be in existence for the next 140 years.

The group’s earnings per share increased by 40 per cent from $2.46 in 2020 to $3.45. Total assets grew by 11 per cent to $17.461 billion from $15.705 billion. As a result of this the board approved a final dividend of $1.50 per share taking it to $1.80 total.