Performance Review: Taking Stock of The Local Market

Banking on solid performance

Overall, the banking and insurance sector continues to show positive financial results. Guardian Holdings Limited (GHL) kicked off November earnings with a 29% rise in profitability driven by improved net insurance service results, higher net investment income, increased insurance brokerage fees and commission, and reduced operating expenses. Republic Financial Holdings Limited (RFHL), posted an After-Tax Profit of TT$2 billion, attributed to solid loan growth across all business segments and greater returns from their investment portfolios. Despite a dip in net operating income, ANSA Merchant Bank’s (AMBL) profit attributable to shareholders climbed to TT$118.84 million. JMMB Group Limited (JMMBGL) on the other hand saw its half-year Operating Revenues and Profit for the period fall year-over-year due to sizeable drops in gains on securities trading and the share of profit from its stake in Sagicor Financial Company among other issues. Elsewhere, NCB Financial Group’s (NCBFG) corporate earnings surpassed the prior year due to the outperformance of their banking and investment business line.

A need to manufacture more growth

Unlike the overall positive results of the finance sector, conglomerates and manufacturers delivered a somewhat mixed bag. Massy Holdings Limited (MASSY) recorded a 12.36% drop in After-Tax Profit, despite a 10.82% rise in Group Revenue and improved cash position.This was due to one-off costs related to governance enhancements, financing expenses from recent acquisitions, and receivable adjustments. Angostura Holdings Limited (AHL) also experienced an overall decline, due to weakness in concentrated segments of the local market. Meanwhile, Trinidad and Tobago National Gas Limited’s (NGL) profit climbed 153.2% compared to the same period in the previous year, buoyed by a boost in the profitability of its investment in Phoenix Park Gas Processor Limited. National Flour Mills (NFM) registered a jump in Profit After Tax in the face of a 10% Revenue decline, and in keeping with this trend, ANSA McAL’s (AMCL) reported Profit Before Tax increased by 21%, largely driven by continued growth in the Group’s segments following recent acquisitions. GraceKennedy Limited’s (GKC) profit grew, along with its revenue from products and services. Unilever Caribbean’s (UCL) Total Comprehensive Income advanced, in part thanks to cost optimization and operational efficiencies, and Trinidad Cement Limited (TCL) benefitted from greater revenues, sliding cost of sales, and reduced expenses.

Seeking a Profitable Future

Across other sectors such as Investment and Media, again mixed performance is evident. Endeavour Holdings Limited (EHL) exceeded the prior year’s results by TT$0.2 million and the National Investment Fund (NIF) recorded Net Income of TT$3.48 million, and a Total Comprehensive Loss of TT$570.53 million, both representing improvements over the comparative period. Similarly, the Unit Trust Calypso Macro Index Fund (CALYP) noted a year-over-year increase in Profit for the Period, however, the fund’s total comprehensive losses widened. The Point Lisas Industrial Port Development Corporation (PLD) saw Revenue and Profit before Tax grow 6% and 301% respectively, with the latter being positively impacted by a reversal of a bad debt expense. Guardian Media Limited (GML) and LJ Williams trended in the right direction, reporting narrower losses, while One Caribbean Media’s (OCM) revenue and profit both declined. Eppley Caribbean Property Fund’s (CPFV) full year profit fell to BD$13.75 million, and MPC Caribbean Clean Energy (MPCCEL) posted a Total Comprehensive Loss of US$1.43 million due to Net Losses on Investments at Fair Value Through Profit or Loss.

As the economic landscape evolves, these results underscore the value of strategic foresight, operational efficiency, and adaptability...terms which could easily apply to investors as well to navigate potential opportunities. Sheppard will gladly guide you along the right path.