Yet another regional conglomerate operating in Barbados is registering significant profit growth, even as the COVID-19 pandemic depresses Caribbean economies.
In its half-year unaudited financial report just published, the Port-of-Spain- based Massy Group is defying the pandemic uncertainty, reporting a TT$50.28 million (BDS$16.76 million) increase in profit from continuing operations, for the six months ending March 31.
Profit from continuing operations for the half-year increased from TT$264.017 million (BDS $88.023 million) to TT$314.302 million (BDS $104.767 million). The Massy Group achieved this success despite a slight drop in revenue from continuing operations during the review period.
In comments to shareholders, chairman Robert Bermudez said restrictions occasioned by the COVID-19 pandemic remained in place in all of the countries in which the group operated.
According to the Massy Group chairman: “While vaccine rollout programmes have begun in all of our countries, herd immunity is unlikely to be achieved in the immediate future . . . .
The economies of countries in which we operate continue to struggle, when compared to prior years, and without the extra consumer spending, which took place in March 2020 ahead of lockdowns and restrictions, consumer demand was even lower in the second quarter of financial year 2021 than in financial year 2020.”
Bermudez informed shareholders that despite these challenges, the group’s second quarter year-to-date performance was “commendable”. He noted that the group’s strategy to manage its operations as an investment holding company had paid off in the second quarter of the 2021 financial year.
Detailing the current operating environment for the Massy Group, which has substantial investments in Barbados, Bermudez said: “The group’s three main business portfolios experienced an interruption to their growth trajectory in the first three months of this financial year.”
The chairman noted that integrated retail third party revenue declined over the previous year by five per cent. However, he explained this was consistent with the slowing of consumer demand throughout the region.
The chairman also hailed the success achieved through the new style of management which gives greater autonomy to the leadership of various portfolios. He said this was “unleashing the creativity and ambition of executives and professionals” resulting in an improvement in portfolio performances.
“We are confident in our portfolio teams to overcome this interruption to our growth trajectory in the coming months, we therefore believe it is prudent to declare half-year dividend a TT$0.55 (BDS$ 0.18) which represents a ten per cent increase over the prior year.”
And after delisting from the Barbados Stock Exchange in 2016, the Massy chairman announced the conglomerate, which is heavily invested in retail, automotive sales, and gas, will be cross-listing on the Jamaica Stock Exchange soon, if its application is approved.
“The Board considered the market sophistication and growth opportunities evident in the Jamaican securities market, which has become increasingly more dynamic over the past few years. The Board expects this will promote greater regional and international interest in the company’s shares, which will redound to the benefit of all shareholders,” Bermudez pointed out. (IMC1)
