MASSY HOLDINGS LTD., the Trinidad-based group with a major asset base here after taking control of Barbados Shipping &Trading Co. Ltd. a few years ago, has seen its profits decline for the financial year just ended.
Audited consolidated financial results for the year ended September 30 show a decline in the group’s earnings, with third party revenue down by three per cent or TT$411 million. The Massy Group’s total third party revenues were therefore down from TT$11.9 billion earned in 2015 to $11.5 billion (about US$1.75 billion).
In a statement to shareholders, chairman Robert Bermudez cited a long list of one-off events and other reasons for losses in its non-food business.
But there was some upside, and that’s where we come in. Unfortunately, the company does not provide a breakdown between its Barbados and Eastern Caribbean businesses, so we remain lumped in the same pot. But, and I may be wrong, I am going to say I think we account for the majority of the figures quoted below.
Barbados and the Eastern Caribbean, you see, seem to be playing an increasingly important role in Massy Holding’s bottom line. While, as I noted above, total third party revenue for the group fell from TT$11.9 billion in 2015 to TT$11.5 billion in 2016, the Barbados and EC contribution rose from TT$3.7 billion in fiscal 2015 to $3.9b in 2016.
By the way, all “third party revenue” means is sales outside the group, that is, not between subsidiaries.
Now if my sums are right, Barbados and the EC’s combined contribution to Massy Holdings total third party revenue therefore rose in 2016 to just over one-third, or about 34 per cent, from 31 per cent the year before.
By way of contrast, Massy’s revenues from its three other biggest markets – Guyana, Jamaica and Colombia – were well under TT$2 billion combined.
And as for profit before income tax, while T&T revenue fell from TT643.5 million (about US$95.4 million) in 2015 to $475.7 million (about US$70.5 million) in 2016, profit before income tax (PBT) for Barbados and the EC rose from TT$230 million to TT$287.2 million (about US$$42.6 million).
And here’s one more thing of interest about Massy Holdings in Barbados and the EC: its asset base is inching closer to that of the home turf. Barbados and the EC now account for TT$4.2 billion in total assets compared to TT$5.1 billion for T&T itself.
And so we come to the bottom line for Massy Holdings in 2016, with the group declaring a net profit of TT$536.2 million (US$79.5 million), down substantially from the TT$668.3 million (US$99 million) for the previous year.
With food retailing and distribution Massy Holding’s biggest overall activity in Barbados, I am glad to see them increasing their sales despite the competition. As you know there is a “Popular” uprising underway, with a new outlet just opened at Kendall Hill, and consumers are on the hunt for lower prices.
I hope Massy, which has set the highest standards for service in the food business here, can retain its margins and continue to grow the business, despite the challenges ahead.
With oil and gas prices now on the rise again, Trinidad’s economy is expected to grow this year by over two per cent after contracting over the past three years. This should help all companies operating in T&T, and especially Massy Holdings, whose fortunes still seem closely tied to the energy services sector.
Patrick Hoyos is a journalist and publisher specialising in business. Email: pathoyos@gmail.com.
