“The Group delivered top line revenues of $1,439 million compared to $1,305 million in 2012 an increase of 10 percent, but this translated to a 6 percent increase in pre-tax and after tax profit, over the prior year, thanks to lower interest cost. The real issue is that profit fell in the quarter before charging interest on loan funding, but for this, profit would have been down as the group reported operating profit of $211 million down from $222 million in 2011 first quarter” was, IC Insider in comments in early 2013 on Ansa Mcal first quarter results of that year.
What has happened since? According to the group’s 2014 audited accounts, profits are down for 2014, having picked up slightly in 2013. Sales revenues amounted to $6.1 billion, down slightly from $6.2 billion in 2013, generating profit before tax of $1.07 billion down from $1.14 billion in 2013 and earnings per share of $3.97 versus $4.31. Profit after tax due to the group’s shareholders amounted to $685 million, a decline of 8 percent from $742 million in 2013. In 2012, the group reported profit of $634 million, in 2011, profit of $597 million that was down on the $621 million earned in 2010, reflecting a continuous trend of little or no growth, which has been typical of many of the Trinidadian companies in recent years. The group boast total assets in excess of $13 billion at the end of 2014.
“Strong gains in our automotive, trading and distribution segment offset the decline in manufacturing, packaging and brewing segment” was what Management advised shareholders of in their report to them.
Carib Beer – one of the best known products make by the Ansa Mcal Group
Buy hold sell| The group is financially strong, with a well-diversified portfolio of businesses that can help it weather economic storms. With the price of oil having fallen, inflation and interest rates on the rise again in Trinidad & Tobago, the group’s main market, it is difficult to see a major resurgence in Ansa’s fortunes in the medium term.
The PE of the stock is around 17 times earnings, the dividend yield is a low 2 percent with a dividend of $1.30 per annum. The stock trades on the Trinidad & Tobago Stock Exchange and is best left alone until there are clear signs of profit uplift.
[…] the first six months of 2015, Ansa McAl Group achieved revenues of $2.87 billion against $2.9 billion in 2014. For the June quarter, […]