GEL hails performance but cautious

The rebound experienced by local conglomerate Goddard Enterprises Limited (GEL) last year continues, as the group registered a 7.1 per cent increase in net profit for the last quarter ending December 31.

In the unaudited consolidated financial highlights for the October-December 2022 period, GEL recorded a net profit of $25.7 million and the board of directors welcomed the numbers, noting it was achieved despite the underperformance of its local manufacturing entities and $40 million in one-off expenses.

“Our local manufacturing entities were adversely affected by machinery breakdowns, low productivity and increased input costs not passed on to consumers during the period. 

“The one-off expenses were as a result of legal, banking and other professional fees incurred to secure financing for our recent acquisition of 100 per cent of the shares in IMC Panama and a syndicated facility for upcoming capital projects in the Manufacturing Division,” the directors noted in their Board Review that accompanied the financials signed by Anthony Ali, the chief executive officer and Charles Herbert, the board chairman.

The income statement of the conglomerate showed that profit from operations was up by 3.2 per cent, reaching $22.38 million.

In discussing GEL’s joint venture with Caribbean Distribution Partners Ltd, the directors said it continued to be the top contributor to GEL’s bottom line, as its share of income from associates increased by 23.2 per cent.

Ali and Herbert added: “Our Catering and Ground Handling Division experienced a 27.5 per cent increase in profitability over the comparative period as Airline Catering revenues increased and IMC, with results included for one month during the quarter, met profitability expectations. The Building Supplies Division performed well with all entities exceeding expectations except in St Lucia which was negatively affected by the flash floods there in November.”

The company’s automotive division was hit by
supply issues which impacted the division’s performance; however, the board assured stakeholders that the supply issues were expected to be resolved in the second quarter of the financial year.

Offering their assessment of what was likely over the rest of the financial year, the directors noted: “We are hopeful that the Group’s businesses will meet expectations.”

However, they cautioned that with predictions of a slowing down of the global economy in 2023, increasing geopolitical tensions in Europe, rising interest rates and the expectation of inflation to persist, there was still uncertainty.

They added: “Management continues to be focused on the execution of the strategy while being watchful of world events and will be proactive in our responses against any risks or challenges faced.” 

(IMC1)