Ansa McAl profits decline despite 14% revenue increase

The content originally appeared on: Trinidad and Tobago Newsday

Ansa McAl chairman A Norman Sabga during the release of the group’s half-year results in June. The group’s profits declined over the nine-period ending September 30. – Photo by Sureash Cholai

CONGLOMERATE Ansa McAl recorded an increase in revenue of 14 per cent, or $581 million, to $5.7 billion for the first nine months, this year. The nine-month revenue was $4.9 billion in 2021. However, its after-tax profit plummeted to $13.7 million from $335.1 million in the comparative periods.

The increase was reflected in the group’s unaudited results for the nine-month period ending September 30, 2022 published on Friday.

The top-earning sector was construction, manufacturing, packaging and brewing which earned $2.1 billion, compared to $1.6 billion in 2021.

In its media, retail and parent-company segment, the group earned $236,423,000 compared to $224,792,000.

Banking and insurance earned $747,658,000 – a decrease of some $40 million – compared to $784,907,000. Automotive, trading and distribution in 2021 recorded revenue of $1.4 billion which increased to $1.5 billion this year.

The group’s total asset rose to $17.570 billion from $17.043 billion.

Ansa McAl, which operates in manufacturing, automotive, media, insurance and other businesses, saw increases in revenue all sectors except banking and insurance.

In his statement, chairman A Norman Sabga said the non-cash market losses reduced the group’s before-tax profit from $461.8 million to $139.1 million. After-tax profit was $13,733,000 compared to $335,151,000.

He added that while there is a challenge in predicting, with certainty, the turnaround on investments in the banking and insurance portfolios, the two sectors continue to do well. To demonstrate this he highlighted Tatil’s acquisition of Colfire, which will be finalised in 2023.

“We have set an aggressive target of doubling the group’s profitability by 2027. Underpinning this target are robust strategies to achieve organic and inorganic growth in both new and existing regional and international markets.”