Ansa McAl boasts of pre-pandemic level profits


Anthony N Sabga III –

CONGLOMERATE Ansa McAl Group boasted Thursday of pre-pandemic-like profits and continued project successes as the world eases covid19 restrictions.

Speaking at a virtual shareholders’ meeting, group chairman Anthony Norman Sabga III said capable management and committed staff had generated $5.970 billion in revenue with pre-tax profit of $935 million. . After-tax profit was $595 million.

In comparison, in 2019, the conglomerate which operates in the United States and the Caribbean had a turnover of 6.593 billion dollars with a pre-tax profit of 1.036 billion dollars and an after-tax profit of 645 million dollars. . 2020 revenue was $5.919 billion with pre-tax profit of $723 million and after-tax profit of $423 million.

Sabga said 2021 was tougher than 2020, saying the conglomerate faced challenges last year that it hadn’t anticipated following the first year of the pandemic.

Asked then how the business improved its performance and achieved pre-pandemic profitability, Sabga said: “We benefited from a fairly favorable global investment environment which helped our results.

“We have remained steadfast despite the challenges, kept our heads held high and our leaders in the game, and supported our people who serve our customers. Added to this, skillful leadership and the continued application of our principles business unwaveringly is what makes our success and what fuels our confidence.

The most profitable sector for the conglomerate was construction, manufacturing, packaging and brewing, which reaped 42% of its revenue, with the least profitable being its media business generating 6% of their profit. Automobile, trade and distribution gained 24% and banking and insurance contributed 18% of the conglomerate’s profits.

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

Chief Financial Officer Nicholas Jackman said: “Banking and Insurance has really been the crown jewel this year in terms of profitability (with) $371 million in profit from this segment, surpassing our construction, manufacturing segment , packaging and brewing.

“Our life insurance business saw a substantial increase in investment, realizing gains in both local and foreign investment in 2021. General insurance also saw growth.”

He added that despite the restrictions affecting its exports, the company has been able to move intra-regionally to maintain its commitments.

While TT and Barbados remained the top earners in the seven countries where the company operates, Grenada and Jamaica outperformed all others in the construction sector, due to the acceleration of construction mandates in these countries .

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

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

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