First quarter profits surge 44%

With just 11 percent of listed companies left to report first quarter earnings, preliminary results show a major surge in profits with an increase of 44 percent over the 2021 first quarter, from a 20 percent increase in revenues. Excluding results for the two Trinidad based, Guardian Holdings and Massy Holdings, profits would rise by 55 percent for the rest, from a 26 percent rise in revenues.
Profits exclude exceptional one off items and do not include other comprehensive income. NCB Financial Group, JMMB Group and Scotia Group suffered major unrealized losses in their investment portfolio as a result of increased interest rates. These losses are shown in other comprehensive income that when included reduces the strong operating profit substantially.
Contributing to the strong rise in overall profits are companies that suffered losses or sharply reduced profits in the 2021 period and were recovering in 2022, from the economy that was mired in restrictions on trade within the local economy.
The results to date show that the educational sector grew by 1,880 percent but only two companies are on the list with a mere $12 million in profit. Medical & Pharmaceutical revenues rose a strong 35 percent to $1.33 billion with profits surging 463 percent to $113 million. Restaurants profit rose 118 percent to $26 million, up from a loss of $143 million in 2021. Banking profit is up 104 percent to $12.5 billion, from a 33 percent rise in revenues to $116 billion, with all the gains in profit flowing from NCB.
The most outstanding segment based on size and the large number of companies is the Financial Services, with 18 out of the 20 companies reporting so far, enjoying a rise of 65 percent in after tax profit while revenues rose 26 percent to $53 billion. Distribution revenues climbed 30 percent to $33.2 billion and profit rose 53 percent to $2.24 billion from just $1.5 billion last year.
Conglomerates were disappointing, with no growth in profits of $5.8 billion from a 13 percent rise in revenues to $113 billion and Manufacturing was only able to squeeze out a 13 percent rise in profit to $3.8 billion from a 22 percent increase in revenues to $34 billion, but eight of the 13 companies reporting enjoying double digit profit gains of 24 percent and six above 45 percent.