Ansa McAl Group profit before tax up by 234% or $218m

The Ansa McAl Group’s profit before tax grew by $218 million, or 234 per cent, for the six-month period ended on June 30. Profit before tax now stands at $311 million, compared to $93 million for the comparable period last year.

The conglomerate’s revenue also increased by $105 million, or three per cent – now $3.251 billion, compared to $3.145 billion last period. Earnings per share skyrocketed by 611 per cent and are now $1.13, versus $0.16, while the group’s total assets grew by four per cent, or $17.762 billion, compared to $17.034 billion.

Its gearing ratio decreased to 7.7 per cent from 8.2 per cent last December.

The group’s banking and insurance businesses – Ansa Merchant Bank Ltd, Tatil General and Life, Bryden’s Insurance Barbados and Consolidated Finance – produced robust growth in its core operations and positive non-cash mark-to-market gains in its investment portfolios.

Ansa Merchant Bank Ltd saw a 166 per cent jump in profit before tax for the same six-month period ended on June 30. Its profits stood at $87.7 million after a $133.4 million loss for the same period last year.

Chairman A Norman Sabga, in his statement said, “Although we continue to face increased input costs impacting our construction, manufacturing, packaging and brewing segment, our manufacturing and automotive operations have been able to demonstrate strong profitability.”

The group’s Jamaican chlorine-hub is performing well. While in Guyana, it was able to expand its automotive portfolio by securing two lines of business – IVECO trucks and Hyundai construction equipment.

Sabga also said, “I am pleased to announce that following our earlier acquisition of Colfire, we completed the acquisition of a stake in the Bahamian Brewery and Beverage Co Ltd which expands our beverage business regionally. We have also commenced production of Carib beer under contract with strategic brewing partners in Greece and Canada.”

Locally, the group has invested $200 million in a new returnable bottling line to increase capacity and efficiency, with installation to be completed by November.

The group is also determined to be a $2 billion company by 2027, as challenged by its leadership team last November.

“As we pursue our objectives, we will continue to focus on people, social well-being and the natural environment. We will always be guided by our core values and good corporate governance which remain the foundation blocks of the culture of the group.”

Sabga added that as the group embraces the future with optimism, it remains committed to a rigorous execution of the 2x plan for the benefit of its stakeholders.

An interim dividend of $0.30 per share has been approved by the directors and will be paid on September 8 to all shareholders on the register as at August 24.