Ansa shares growth plans during dividend pause at AGM

THE Ansa McAl board shared its plans for growth in the short to mid term on May 29, at the company’s annual general meeting at the Hyatt Regency in Port of Spain.

The board’s presentation seemed to be a bid to convince shareholders to continue reinvesting, as the company earlier this year expressed its plans to withhold dividend payments for a three-year period as it continues on its 2X agenda.

“Normally we would not share as much as we are sharing today, but we think it is important for us to bring you, the shareholders along for this journey, especially as we are asking you to reinvest your dividend alongside the organisation,” said Ansa McAl CEO Anthony N Sabga III as the board began its presentation.

He told shareholders that, with Ansa’s plans and the shareholders' reinvestment over the next three years, the value the organisation will create will far exceed expectations.

“We anticipate and EBDITA growth of well beyond TT$1.8 billion, correlating with the 2027 coal of achieving 2X. We expect that our share price appreciation will grow beyond $80 per share. Our organisation, as a result of the investments that we are making will correlate with a net forex (foreign exchange) earning platform and we also anticipate given this growth, that we will have a substantial reintroduction of dividends that correlates with this substantial size, scale and benefits of the organisation.”

According to the TT Stock Exchange, Ansa’s share price now stands at $45.

Chief strategy officer Andre Jeffers said the company plans to leverage growth of its pillars, the beverage, banking and bleach sectors.

With regard to the beverage sector, he said despite significant market sharing in some of the territories in which they operated, Ansa still managed to achieve double-digit growth in profits.

“We have five breweries across the region and in America. We employ over 1,000 people, and in many of the regions that we operate we are the employers of scale.”

Jeffers said, with regard to the beverages sector, Ansa plans to make itself the brewers of the region, with new flavours, new formats and new innovations in beverages.

Jeffers said Ansa plans to double the number of its breweries in the region, from five to ten. It also plans to increase the number of cases of beer sold a year to more than 10 million cases.

In the banking sector Jeffers said the company planned to have Ansa bank grow to be one of the top five banks in the country. With regard to insurance, Ansa plans to make Tatil the leading Caribbean service provider.

With regard to its bleach segments, Ansa plans to begin producing at a level which would be able to provide bleach products on a hemispheric scale.

“Bleach is a space that Ansa McAl has always been very strong in. Through Ansa Chemicals Ltd, Ansa has been the chlor-alkali manufacturer for Caricom. We have significant share in the region. We also service many of the water authorities in the region with chlorine.”

He described Bleachtech, the company that was acquired by Ansa in 2024 would be able to assist them with their growth plans.

“This is an entity that we bought that was operating at 50 per cent capacity. So the opportunity that affords us once we apply our philosophy is significant.

“Bleachtech is going to turn into a high-velocity growth pillar for us in hard US currency.”

In March Chairman Norman Sabga announced that it will suspend dividend payments to shareholders for three years, to increase share price in the near future.

Group chief financial officer Nicholas Jackman said the company’s revenue profit before tax and share price all saw growth.

He said the company’s revenue for the year ending December 31, 2024, increased by five per cent or $354 million, to $7.4 billion. The adjusted earnings before interest, taxes, depreciation and amoritisation increased by 11 per cent or $148 million to 1.46 billion.

He said profit before tax increased by $64 million or eight per cent to $906 million.

Earnings per share also increased by 11 per cent.