Massy Holdings Limited recorded increases in its profit before tax (PBT) from its operations in Barbados, the Eastern Caribbean, Jamaica and Colombia for the six months ended March 31.However, a 28 per cent decline in PBT from T&T resulted in overall group PBT dropping by three per cent to $398 million.
Unaudited consolidated financial statements published over the weekend show that the depreciation of the TT dollar enhanced PBT from the group's overseas operations.
Chairman Robert Bermudez, in his statement on the group's latest financial statements, said contraction in the energy sector, weakening of the T&T economy and a one-off maintenance charge on a joint venture air separation plant at Point Lisas contributed to the lower PBT on local operations
He added: "Earnings per share through March 2016 declined by eight per cent from $2.75 to $2.53. Increases in the Green Fund Levy in Trinidad and Tobago, higher effective tax rates from profits from overseas and the inability to use some losses for tax relief further eroded profit after tax
"Given the current challenges in the Trinidad and Tobago economy, the group has intensified its attention to managing foreign exchange and continues to find ways to fund its foreign currency requirements through multiple strategies including greater attention to the balance between receive and send transactions in the money transfer business; daily monitoring of foreign exchange required, generated and requested; pursuit of foreign exchange generating investments; and finding ways to reduce import needs by buying and promoting more local goods."
Bermudez said the focus on operational efficiency and waste elimination had resulted in a $35 million reduction in head office and other adjustments.He said the group continued to pursue growth and diversification and had successfully launched an Internet and television service.
Bermudez said the group's balance sheet remained strong with healthy cash flow generation from its operations funding gowth.