Agostini’s Ltd has seen an increase of 5.4 per cent in revenue ($2.4 billion in 2019 to $2.6 billion in 2020) and a 0.5 per cent rise in net profit ($122.5 million in 2019 to $123.1 million in 2020) for the nine months ended June 30. The group’s operating profit also climbed by 9.9 per cent moving from $179.9 million to $197.7 million.
In the company’s financial report for the period, chairman Christian Mouttet expressed that the only decrease was registered in profits attributable to the shareholders, which fell by one per cent to $89.7 million compared to $90.7 million in the same period in the prior year.
Mouttet said: “Excluding the adjustment for the new IFRS standard for leases, profit attributed to shareholders would have been $92.5 million, an increase of two per cent over the prior year.”
He added that earnings per share was $1.30 versus $1.31 in the prior year, noting that it would have been $1.33 before the IFRS 16 impact.
According to Mouttet, Agostini’s “experienced a challenging third quarter as our businesses and the markets in which we operate adjusted to the effects of the COVID-19 virus.”
He disclosed that in the first half of the year, Agostini’s pharmaceutical businesses performed well, as did its fast moving consumer goods (FMCG) businesses in Trinidad, St Vincent and Guyana.
However, in the more tourism-dependent markets of Barbados, St Lucia and Grenada, Mouttet highlighted that the company’s FMCG businesses experienced reduced sales and profitability.
In like manner, Mouttet revealed that the group’s energy services and construction businesses performed below expectations as those industries continue to struggle in a weak macro-economic environment and from low energy prices.
“Overall, our group has performed reasonably well for the first nine months, taking into account the impact the pandemic has had on many industries and economies.”
He explained that across all of the group’s companies, Agostini’s has taken the opportunity to carry out an in-depth review of all of its operations and business structures so that it can adapt to and thrive in the very dynamic business landscape it is experiencing.
Mouttet contended that given the uncertainty brought about by the COVID-19 pandemic, it is difficult to make forward-looking statements with any level of certainty.
He noted, however, assuming no additional significant economic disruptions, Agostini’s expects results for the full year broadly in line with the previous year.