‘Problem child’ lopped off as Agostini sales soar with $261m

THE LOCAL conglomerate Agostini’s Limited recorded sales of $261 million over the last financial year, 12.8 percent more than the previous year. Profits attributable to shareholders was five million, down 46.6 percent from the previous year. The company though, which has a number of subsidiaries under its belt, is not daunted. Both Chairman Ray-mond Bernard and Managing Director Geoffrey Agostini are confident that the Group has a bright future. In its annual report  Agostini said all the subsidiaries have budgeted for improved results for the financial year ending September 30, 2005. He told shareholders that while the sale of Cheekies was a “bitter pill to swallow,” the directors felt that divesting its diaper manufacturing operations, which was described as a ‘‘problem child,’’ was in the best long-term interest of the Group.

“The improvement in profitability, cash flow and effective use of management’s time, will more than offset, the one-off cost associated with this plant’s closure.” The diaper manufacturing operations were sold to Misons Industries Limited. This resulted in a loss of $13 million before tax and $8.4 million after tax. “While we will no longer be the manufacturers nor owners of the various brands of diapers and feminine napkins, Agostini Marketing will continue to market Cheekies diapers in the Trinidad and Tobago market.” He explained that although one never likes to turn one’s back on an operation that provided excellent profits for 15 of the 19 years the plant was in operation, it became clear in late 2003, that it was necessary to exit the industry.

In giving a rundown on how some of the subsidiaries performed in 2004, he said, the pharmaceutical division had an outstanding year, achieving its highest ever sales and profit. The company’s  hardware department also had record sales and profits, the 2004 report said.  Its flagship products of plywood, Sherwin Williams Paints and gypsum products all contributed significantly to the positive outcome. “We are hoping to continue to expand by opening additional outlets in 2005,” he said. The company has also embarked on an eight-unit condominium project in Cascade and a substantially larger project for the National Housing Authority of approximately 400 houses in Debe, Penal. “Our energy and oilfield supply industry had a good year, with sales just below last year’s record level,” he said.