Massy Holdings on way to becoming $25b company

Massy Holdings says it wants to be a company that generates $25 billion in revenue by the year 2030.

In a conversation with Newsday on August 16, it said this is a goal it is well on the way to meeting, as its half-year results indicate its revenue has increased by 13 per cent.

The company’s financial result for the nine months ending June 30 was $11.7 billion, compared to $10.3 billion for the same period in 2023.

It also recorded $465 million in profits for the period.

Group CEO David Affonso and CFO James McLetchie said they expect the company to close off this financial year between $15 billion and $16 billion.

"The more powerful we are financially, the more we can do in our stores and in our communities," McLetchie said.

Affonso said the company plans to reach its goal by developing the three portfolios of its company – retail and distribution; motors and machines and gas products.

"Those are the three areas where we felt we had some scale and on what we could build our future," he said. "We are now doing a bit of refining on our business model.

"We are refining the structures that support the three businesses so that our team could look for capital for the entire group and decide where to deploy it to get the best returns."

While the revenue is a significant highlight, Affonso said the group’s cash flow for the period was even more so.

Its consolidated statement of cash flows for the period revealed that for the nine months ending June 2023, the company garnered $188.9 million.

For the same period this year, the company garnered $640.4 million in cash.

Affonso said improving cash flows was one of the major goals of the company this year. He said hard cash is needed to support its shareholders.

"When we sell a customer $100,000 worth of goods we book the profits, but what we have is not money, it is receivables, so, when we have to pay dividends, if we don’t have the money, we can’t pay it, even though we’ve booked a profit.

"If you have a lot of inventory in your warehouse, that is just cash sitting there, not working. That is what we have been doing when we talk about operational excellence – getting a turnaround on the cash as fast as possible."

He said the company made the increase in cash through simple discipline.

"Use only the inventory you need, and collect your money on time. Simple discipline freed up over $400 million," Affonso said.

In July, the group's Jamaican company IGL Ltd was named Best of Chamber – Large category by the Jamaican Chamber of Commerce at its awards ceremony.

Massy said the accolade not only acknowledges the company’s financial performance, it also notes the group's safety practices, attainment of global certification, talent management practices, environmental stewardship, governance and corporate social responsibility.

Massy acquired IGL for US$140 million last year.

In a release, Massy Gas Products CEO Peter Graham said the award was a testament to the company’s dedication to high standards and values.

"IGL has been part of the fabric of Jamaican life for the past six decades," he said. "This is a team win made possible by dedicated Jamaican staff members who turn up every day with a positive attitude and a 'can-do' mindset."