RUM and bitters producer, Angostura Holdings Ltd, yesterday reported a 45.5 per cent increase in its after-tax profit, for the first quarter of its 2021 financial year.
Angostura profit for the period ending March 31, 2021, was $19.06 million, which was 45.5 per cent higher than the $13.09 million the Laventille-based manufacturer reported for the same period in 2020.
The company’s selling and marketing expenses for its first quarter amounted to $31.2 million, which was 14.7 per cent less than the $36.61 million in 2020.
Angostura also saw a decline in its administrative expenses, which were $1.1 million less than for 2021.
On the other hand, the company’s finance income for the period ending March 31, 2021, was $4.61 million, some 88.1 per cent higher than the $2.45 million the manufacturer reported for the same period in 2020.
In comments accompanying the unaudited, consolidated financial report, Angostura chairman Terrence Bharath said: “Despite the cancellation of the 2021 Carnival season, the group reported profit before tax of $27.7m for the three months ended March 31, 2021, an increase of 41 per cent or $8.1 million from the comparative prior period ended March 31, 2020.
“The group’s first quarter 2021 financial performance reflected revenue of $152.1 million, a nominal decrease of $1.1 million or 0.7 per cent from the prior comparative period. Local sales, which contributed 65 per cent of total revenue, were generally subdued due to the absence of the 2021 Carnival season and the general economic uncertainty caused by the prolonged global pandemic.
“This was particularly evident in the month of January. However, the group successfully capitalised on limited opportunities available during the virtual Carnival experience in February as consumers planned safe ‘staycations’.
Bharath pointed out that, internationally, Angostura noted strong signs of recovery in the Europe, Middle East, Asia and Africa (EMEAA) and Australasia regions with increased shipments of bitters to Australia and sales to the EMEAA in line with the prior comparative period. He said this was due to restocking after depressed consumption in 2020 and increased rum sales to key markets with growth driven by at-home consumption.
According to Bharath: “The board of directors is mindful of the uncertainty in our markets, local and international, in the face of the ongoing challenges associated with the Covid-19 pandemic.” Notwithstanding this, he said, the company is encouraged by its performance to date to consider every opportunity to sustain its market thrust.