Massy Holdings’ recent controversial rebranding of its companies, including all in Barbados, has cost the Trinidad and Tobago conglomerate $18.6 million.
But the group’s recently-installed chairman Robert Bermudez has justified the expense, telling shareholders “we expect the rebranding investment to make a very positive return to the group”.
This, he said, was even though this “charge for the investment related to the group-wide rebranding programme” saw Massy’s group profit before tax declining by 6.8 per cent to reach $175.9 million for the first nine months of its financial year ended June 30.
“Half of the rebranding costs related to signage and painting for all Massy buildings, many of which were due for a facelift. The rests of the costs are related to professional services, training, marketing materials, advertising and events,” he Bermudez said.
At the same time, he reported that “contraction in consumer spending in the Barbados economy has adversely affected some of our operations”.
Commenting on the rebranding, the chairman said: “The third quarter of our 2014 financial year saw the successful implementation of the rebranding of the Massy group of companies under one umbrella brand. All major operations of the group, through all territories except Guyana and St Lucia, now carry the Massy name.
“For the first nine months of the financial year 2014, total group revenue increased by [$303.2 million) or 12.7 per cent to [$2.6 billion]. Group profit before tax increased by three per cent to [$194.5 million] before accounting for the one-off rebranding investment.”
Bermudez said Massy was “continuing to pursue the implementation of its strategic plan while executing a cultural transformation that is required to support the strategy”.
“Some recent acquisitions. . . are already making significant contributions to top and bottom line growth. However, contraction in consumer spending in the Barbados economy has adversely affected some of our operations. Massy also incurred incremental costs in its head office to support organisational strengthening in service of the group’s growth strategy,” he explained.
“Massy is well positioned for future opportunities. The rebranding has helped to focus our strategy to have our subsidiaries work more collaboratively to better and more conveniently serve the needs of customers.”