Pandemic cuts Goddard’s earnings

One of the last remaining Barbadian-controlled conglomerates is hopeful of a turnaround, even as the COVID-19 pandemic continues to take a toll on its operations.

Goddard Enterprises Limited (GEL), which has subsidiaries across the Caribbean and Latin America, released its unaudited three-months consolidated highlights for the fourth quarter of 2020.

Like many companies, the GEL balance sheet took a hit. Net income for the quarter of $12.2 million, was a near 35 per cent drop from the $18.73 million the company earned for the comparable period in 2019.

Net income attributable to shareholders of the company fell by 4.9 per cent, moving from $12.8 million in 2019 to $12.2 million for the review period, which represents the first quarter of the company’s financial year.

GEL, established by the Goddard family 100 years ago, operates in 23 countries, is involved in catering, automotive sales, and manufacturing.

In a joint commentary that accompanied the recently released quarterly financial, managing director Anthony Ali and chairman Charles Herbert, said: “Net income of $12.2m fell by 34.9 per cent due mainly to a fall in the result by the airline catering and ground handling operations of which we own 51 per cent and an improvement in other operations which we own.

They noted: “The fall in results from the Catering and Ground Handling division was due mainly to the curtailment of worldwide travel. This reduction persisted, and while recovery is expected, the timing is unpredictable.”

Of the retail and manufacturing operations, Ali and Herbert told shareholders: “Our manufacturing division continues to do well with Ecuador Kakao Processing Proecuakao S.A., having a strong performance during the first quarter. The company was able to benefit from good cocoa prices and good sales levels.

“The automotive, building supplies and services division performed credibly despite our automotive entities falling behind their prior year’s performance due to reduced economic activity in our operating markets. Our joint venture, Caribbean Distribution Partners Ltd., also gave a good showing during the quarter with a performance above plan. “

Offering their forecast of the conditions expected over the rest of the year, the senior GEL officials said: “The start of the second quarter has been severely impacted by the escalation of the effects of the pandemic.

“We are uncertain of the recovery time, but we remain hopeful and continue to watch developments carefully, manage our liquidity and try to balance operations with reduced demand with those that are either stable or improving.”  (IMC1)