Ansa McAl to suspend dividend payments for 3 years

Ansa McAl Ltd's chairman Norman Sabga said the conglomerate will be suspending dividend payments for the next three years in order to support the group's ambitious growth plans, strengthen its balance sheet and ensure financial flexibility.

He made the announcement as part of the chairman’s statement on the 2024 audited financial statements.

"We are confident that this reinvestment will yield far greater long-term benefits – enhancing our competitive position, expanding into new markets and unlocking new growth opportunities.

"Moreover, we fully expect these efforts to drive significant appreciation in the company’s share price, ensuring that you – our valued shareholders – benefit from a stronger, more resilient and more valuable company.

"The future of our company has never been brighter," he said.

Speaking about the group's long-term strategy, Sabga said Ansa McAl has completed the largest acquisition in its 143-year history – the US$327 million acquisition of BLEACHTECH LLC, a leading US-based chlor-alkali producer.

Sabga said this acquisition was largely financed by a US$200 million loan originated in the international market.

He said this acquisition and other capital improvements have increased the company’s gearing ratio from 7.5 per cent at the end of 2023 to 28.4 per cent at the end of 2024.

The group's revenue grew by five per cent to $7.4 billion. The adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 11 per cent to $1.518 billion, while profit before tax (PBT) increased by eight per cent to $906 million.

For the twelve months, earnings per share (EPS) rose 11 per cent to $3.32, total assets expanded by ten per cent to $20.175 billion and cash flows generated from operations surged 53 per cent year over year.

Sabga said key business segments achieved a significant profit before tax growth. These included construction, manufacturing, packaging and brewing by 29 per cent; automotive, trading and distribution by 22 per cent; banking and insurance by five per cent; and operating margins improved from 12.4 to 12.8 per cent.

Sabga expressed gratitude to shareholders for their continued trust and confidence in the company.

"Your unwavering support has been a cornerstone of our success, and I am pleased to share that 2024 has been a year of exceptional performance and transformative growth for the group.

"As we move forward with ambition, discipline and a relentless commitment to long-term success, we remain deeply grateful for your trust and partnership.

"Thank you for being part of this exciting journey – we look forward to delivering even greater value together," he said.