ANSA McAL Group Chairman and Chief Executive, Mr. A. Norman Sabga (centre) speaks about the Group’s Results for the period ended June 30, 2011 at TATIL Building on Maraval Road, Port of Spain. With him are the Group Finance Director, Mr. Aneal Maharaj (left) and the Group Head of Legal and Corporate Secretary, Mrs. Frances Bain-Cumberbatch (right).
In the midst of the global economic downturn and a slow recovery, the ANSA McAL Group of Companies has recorded its best first half results with a profit of $426 million before tax. Norman Sabga, group chairman and chief executive of the ANSA McAL Group of Companies, made the announcement yesterday during the company’s release of its unaudited results for the six months ended June 30 at the ANSA McAL headquarters at the TATIL building in Port-of-Spain. Stating that “these are the best results in the company’s history” Sabga proudly said that the group’s revenues went up by $46 million over the comparable period in 2010, profit before tax increased by $24 million or six per cent, earnings per share (EPS) improved by eight per cent and net profit margins improved by one per cent.
He also noted that it was the best six-month EPS performance, which stood at $1.64, ahead of 2008 peak of $1.58. Asked by the media how the Group continues to produce such successes, given the challenging economic climate, Sabga said: “Unlike other institutions whether private of public, we are not preapred just to accept that. We have invested heavily in improving our processes from the manufacturing standpoint, investing in our controls and re-training staff and the ability to manage our business. “The pie may be shrinking but we want the largest slice possible and it is that mindset, determination and desire that is the hallmark of the group.” Sabga said most of the benefits came from the financial sector, which suggests that the Group’s strengths lie within the business portfolios and the ability to manage the portfolios.
“The financial sector has more than offset declines in the other sectors,” he said. He also pointed to the success of its overseas operations that includes a chain of supermarkets, which ANSA McAL owns outright as opposed to 40 per cent in 2010. Sabga said that in the second month the supermarkets made a profit after five years of negative growth.The BMW franchise, he said, was also contributing positively. Notwithstanding the positive results, Sabga said there is always room for improvement.
Sabga, however, said the Group is cautious as it has not yet seen the desired level of economic stimulation and this could potentially have an impact on growth. Pointing to the construction industry, where he stated that it was one of the largest income generators, Sabga said he was not seeing any of the projects coming off the ground. He recommended that the Government should establish more incentives to encourage investment in this sector. He also noted that a national strike would not do the economy good at this time.
“It would only hurt the very people the union is representing…it would be a disaster,” Sabga said. Asked if he agreed with the union that the five per cent offer would not provide sufficient economic stimulation, he said there was an element of truth in it but they must look at the long-term fundamentals, which are more important. Also questioned about the kind of impact the US credit downgrade may have on the Group, Sabga said, while they cannot predict the future, ANSA McAL has been consulting with its international financial managers.
August 12, 2011