(Trinidad Guardian) Massy Holdings yesterday reported group profit after tax from continuing operations of $514.41 million for the nine-month period ended June 30, 2023, which was a 20 per cent increase over $427.78 million the publicly listed T&T company reported for the same period in 2022.
For the period October 1, 2022, to June 30, 2023, the group reported revenue of $10.39 billion, which was 12.5 per cent more than the $9.20 bilion it reported for the same period in 2022.
The company, which is listed on the T&T and Jamaica stock exchanges, noted that its revenue growth was propelled by 19 per cent increase in revenue from the Integrated Retail Portfolio (IRP). This portfolio is benefiting from its acquisition of Rowe’s IGA supermarkets in Florida in December 2022.
In highlighting its unaudited consolidated financial statements for the nine months ended June 30, 2023 Massy Holdings also noted that profit before tax from continuing operations grew by 18 per cent to $756 million.
However, the company said its “commendable financial performance” for the first three quarters of the financial year was overshadowed by the fatality which occurred in the Massy Energy Engineering Solutions (MEES) subsidiary.
Employee Allanlane Ramkissoon who was involved in an incident at NiQuan Energy Trinidad Ltd on June 15, 2023 died at a specialist facility in Colombia where he was being treated after suffering burns following an explosion at the plant.
“Investigations into the cause of the incident at the NiQuan plant are ongoing. Our group is committed to ensuring that lessons are learned to ensure safe working conditions for all our employees and stakeholders,” the company noted.
In the statement accompanying the unaudited financial by Massy Holdings chairman, Robert Riley, the company said: “We continue to provide support to his family….Our Group is committed to ensuring that lessons are learned to ensure safe working conditions for all our employees and stakeholders.”
According to the chairman’s report, the company also noted that strong profit before tax growth from subsidiaries in the IRP of 19 per cent, motors and machines portfolio (MMP) of 14 per cent and the gas products portfolio of 11 per cent, were offset by reduced contributions from associates.
Profit before tax from CIG and Massy Wood associate companies were $8.6 million below prior year; and MMP took a full write-down on the value of its investment in the online used car platform, Curbo, of $14.8 million (US$2.2 million).
The company further added that after accounting for their associates, profit before tax from the motors and machines portfolio MMP and the gas products portfolio grew by 5 per cent and 6 per cent respectively.
“The rebalancing of the Divestment Funds Portfolio (DFP) and higher interest rates in the US facilitated significant improvements to the DFP and The Interregional Reinsurance Company Ltd (TIRCL) reinsurance business performance,” adding that for the first nine months of financial year 2023, the DFP produced a gain of US$3.5 million versus a loss of US$5.3 million in the same period in financial year 2022, a US$8.8 million swing.
Similarly, the company noted that the TIRCL profit before tax through Q3 2023 was US$2.2 million versus, a US$720K loss in the prior year, a US$2.9 million swing.
In his chairman’s statement, Riley said: “The Group is progressing its strategy in pursuit of its vision: A Global Force for Good-An Investment Holding Company with a Caribbean Heart. The group’s divestment programme is nearing the end, with significantly reduced contributions from discontinued operations.
“Proceeds from divestments are being leveraged for acquisitions in the group’s core portfolios. As the group expands globally, recent acquisitions contributed $60million (US$8.9million) to profit before tax through Q3 2023. The group’s conservative investment management strategy for the proceeds from its divestment programme is providing adequate returns while protecting the group’s cash.”