Massive profits for Goddard Enterprises

Barbadian conglomerate Goddard Enterprises Limited (GEL) has roared back from the COVID-19 pandemic shock with a record 200 per cent increase in after-tax profit for its 2022 financial year ending September 30.

In its recently published consolidated audited financial highlights, the 100-year-old company established by the Goddard family from St John outlined that the post-pandemic recovery demonstrated the resilience of the group of companies which owns subsidiaries from South and Central America through to the Caribbean chain.

After-tax profits of Goddard Enterprises hit $68.20 million, a significant improvement on the $22.06 million achieved last year.

Chief executive officer Anthony Ali and chairman Charles Herbert also attributed the massive increase in profits to the significant turnaround in the performance of the Catering and Ground Handling Division due to the explosion in post-pandemic air travel.

“An increase in airlift and passenger loads from a pent-up demand for travel resulted in an increase in revenues of 84.5 per cent for the division,” noted Ali and Herbert in the directors’ report.

The senior officials of the company said GEL undertook a restructuring exercise during the pandemic and this was also a contributing factor to the performance.

“Our net income attributable to equity holders of $50.2 million increased by 120.8 per cent over the prior year. Our food and consumer goods joint venture, Caribbean Distribution Partners Limited, was the main contributor to our bottom line. Revenues for this division increased by 11.1 per cent with an improved gross margin and a reduction in operating expenses as a percentage of sales,” the directors said.

An outlier to the group’s performance was the manufacturing division with most of the subsidiaries located in Barbados. Ali and Herbert disclosed that this division was the only one to experience a drop in profitability below the 2021 performance despite “achieving growth in its top line of 6.6 per cent”.

They explained: “This result is attributed to high input costs from increased inflation globally which were not passed on to the consumers.”

On the other hand, GEL’s Building Supplies Division was described as having a “remarkable performance” as entities in St Lucia and St Vincent and the Grenadines rode on increased construction activity in those two Eastern Caribbean countries.

The performance of the GEL Services Division was described as credible as it maintained its prior year’s performance, while the Shipping Division, though still below the Group’s expectation, recorded improvements in its profitability.

Ali and Herbert assured shareholders that GEL’s balance sheet “remains strong” with the Group’s cash reserves increased.

“During the year, we revalued the freehold properties in the Group and this resulted in an increase in revaluation surplus of $33.3 million,” they pointed out.

The directors also said they hoped to build on the 2022 performance, though they were cognisant that “uncertainty still exists and a threat of a recession looms”.

They added: “We will monitor and be proactive in our decision-making as we execute the planned strategy. A third interim dividend of 1.5 cents has been declared and will be paid at the end of February.” (IMC1)