Robert Bermudez Chairman Massy Group Limited Has Released The Following Unaudited Consolidated Financial Statements For Third Quarter Of Fy2022, 30 June, 2022, Expressed in Thousands of Trinidad & Tobago Dollars.

Through the end of the Third Quarter of the 2022 Financial Year, the Massy Group’s investment holdings continued to grow successfully via its main Portfolios as economies in the regions continue to lift COVID19 measures amidst new and emerging challenges with food supply, inflation and rising interest rates.

Group Third Party Revenue from Continuing Operations grew by 13% from $8.1 billion to $9.2 billion versus prior year. Profit Before Tax (PBT) from the Group’s operating subsidiaries of $782 million represents a 33% increase over prior year, PBT through the end of the Third Quarter from the Motors and Machines Portfolio increased by 64% over prior year and PBT from the Integrated Retail Portfolio and the Gas Products Portfolio increased by 25% and 19% respectively.

The growth in the Motors and Machines Portfolio was driven by healthy increases in all of the business in the Portfolio. In particular, Massy Motors Trinidad’s growth was exceptional as its operations were closed during the COVID-19 lockdown in Trinidad for two of the three months in Q3 2021.

Growth in the Integrated Retail Portfolio came from all markets, Guyana’s and Jamaica’s growth was particularly commendable.

Growth in the Gas Products Portfolio was mainly derived from significant growth in Guyana and Trinidad. Special appreciation is extended to the executives and staff in the Group’s operating entities. Efforts to engage all staff in contributing to growth, innovation and improvement of our operations are at the heart of this commendable performance.

As reported in our Second Quarter statement, the stellar performance of the operating companies in the Group is being overshadowed by disappointing performance in the Group’s Divestment Funds (USD investments of proceeds of divested assets) and Captive Reinsurance portfolios.

Calendar year 2022 has been a tumultuous year for financial markets across the globe and the healthy returns enjoyed in 2021 have become losses in most financial markets. Through Q3 FY2021, the Divestment Funds and the Captive Reinsurance Portfolios contributed $53 million of income to the Corporate Office and Other Costs. These Portfolios incurred losses of $40.6 million for the same period in FY2022. The Group, however, retains an overall gain above the principal contributed from the proceeds of divestments.

Higher expenses in the Corporate Office and Other Costs through Q3 FY2022 compared to the same period in FY2021 also offset the impressive performance of the portfolios.

In addition, PBT from associate companies declined by 26% due to operating losses from the Motors and Machines Portfolio’s minority investment in Curbo (an online used car platform) and from the termination and winding down of major contracts at Massy Wood.
Profit After Tax (PAT) from Discontinued Operations decreased by 10% with an $11 million higher gain on the sale from companies sold in Q3 FY2021 than the gain on sale recorded for other companies sold in the same period in FY2022.

As a result, Group PAT through the Third Quarter of FY2022 increased by 3% from $500.3 million in the same period of FY2021 to $515.6 million. With the 20:1 stock split earlier in the year, the Third Quarter EPS for FY2021 increased from 24,11 cents to 24.48 cents in FY2022.

The Group’s transformation to an Investment Holding Company focused on three main portfolios, Integrated Retail, Gas Products and Motors and Machines, is well underway. The underlying performance of the three portfolios demonstrates the growth that this focus is producing.

The earnings volatility arising from the Group’s Divested Funds portfolio will reduce as the assets in the portfolio have been intentionally rebalanced to more conservative instruments and as Group moves to strategically transition those funds to businesses in its three main portfolios, which are growing and providing acceptable returns on invested capital.

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