Massy Holdings reports increase in profits
Port of Spain – The Trinidad-based regional conglomerate, Massy Holdings, which recently announced plans to be listed on the Jamaica Stock Exchange (JSE), has posted a 20 per cent increase in profits for the second quarter in comparison to the same period last year.
Massy, which has operations in several Caribbean countries, said that it had taken the decision to apply for the cross-listing of the company’s shares on the JSE.
“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,” Massy said in a statement, adding that it expects once the application is approved, it will drive a greater interest in the company’s shares, which would benefit all shareholders.
Massy Holdings chairman, Robert Bermudez, who is also the Chancellor of the University of the West Indies (UWI), has described the Massy Group’s performance for the second quarter of its financial year which ended Mach 31, 2021 as commendable.
“The economies of countries in which we operate continue to struggle when compared to prior year 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 financial year 2020,” Bermudez said, adding “despite these challenges, the Group’s Q2 Year To Date performance is commendable,” he stated.
Bermudez said while the Group’s Third Party Revenue from Continuing Operations declined by one per cent from the same period in FY2020, Profit After Tax increased by 20 per cent from TT$263 million to TT$314 million (One TT dollar=US$0.16 cents).
In a chairman’s report in its unaudited financial statements, Massy Holdings announced the group’s earnings per share also grew by 24 per cent, climbing fromTT$2.41 per share last year to TT$2.98 per share this quarter.
Bermudez said the performance of the Interregional Reinsurance Company Ltd (TIRCL) and Treasury investment portfolios managed by the Corporate Head Office, as well as in the performance of the Financial Services Line of Business produced a 120 per cent increase in PBT contribution versus prior year.
“The Group’s strategy to manage its operations as an Investment Holding Company paid off in Q2 FY2021. The new active management of the investment portfolios held throughout the Group under the leadership of the Group Corporate Treasury produced significant gains which more than compensated for weaker performance by the business Portfolios in Q2 FY2021,” he stated.
He said that the investment gains contributed approximately TT$61 million more to Profit Before Tax in Q2 FY2021 than Q2 FY2020, when Massy experienced investment losses in its portfolios, emanating from a decline in US Equities, precipitated by pandemic uncertainty.
Motors and Machines Third Party Revenue grew by nine per cent on the strength of its performance in Colombia.
“However, reduced sales in Trinidad due to low stock levels contributed to a decline in its PBT by nine per cent versus the prior year. Challenges with low volumes of bulk LPG sales in Jamaica arising from little activity at hotels and restaurants and low volumes of Nitrogen sales in Trinidad arising from declining activity in the petrochemical sector of the economy constrained the Gas Products Portfolio to a modest 4 per cent improvement in Revenue in Q2 YTD FY2021 versus prior year,” Bermudez said. (CMC)