Despite what he described as a challenging start to 2025, Ansa McAl CEO Anthony N Sabga III says the company is doing well with its long-term growth strategy and has remained financially resilient.
He was speaking at the group’s quarterly investor briefing on May 15 at Saaman Estate, Port of Spain.
Sabga stressed the group’s commitment to sustainable growth, diversification, and value creation.
“We are structured in a way that allows us to deliver an excessively transformative future.
“Our diversification approach enables us to act in a responsible, sustainable, and impactful manner in every market we serve.”
Despite facing weather-related disruptions, including what he referred to as the “great freeze” in the US Midwest, which affected plant operations, Sabga remained optimistic.
“This is not a systemic issue – it’s a seasonal glitch,” he said, citing adverse weather conditions that impacted operations at their newly acquired Bleach Tech facility in Ohio.
In 2024, the group announced the acquisition of US-based chlor-alkali manufacturer Bleach Tech LLC through its subsidiary, Ansa Chemicals. The deal, valued at US$327 million, marks the largest acquisition in the Caribbean conglomerate’s 143-year history.
Headquartered in Cleveland, Ohio, Bleach Tech operates two chlor-alkali plants located in Seville, Ohio, and Petersburg, Virginia. The facilities produce industrial chemicals, including sodium hypochlorite (bleach), sodium hydroxide (caustic soda), and hydrochloric acid, and play a strategic role in Ansa McAl’s expanding chemical portfolio.
Sabga said the plant was operating at 44 per cent efficiency when it was acquired, but today, operating efficiencies are 60 per cent and continue to trend upwards. He described the acquisition as both transformative and strategic.
Discussing the group’s financial front, he said it recorded a ten per cent increase in top-line revenue and substantial growth in operating cash flows for quarter one. Quarter one refers to the first quarter of the financial year, which covers the months of January, February, and March.
However, earnings before tax (PBT) fell by 46 per cent, or $80 million, and earnings per share declined by 49 per cent. Sabga attributed much of the decline to “one-off” items, including interest expenses tied to recent acquisitions and amortisation.
Amortisation refers to spreading out the cost of an intangible asset like a patent, trademark, or, in this case, a business acquisition.
“We’ve taken on significant leverage, but in a prudent and financially responsible manner that gives us flexibility,” he noted.
Sabga also discussed a shift in the group’s investment philosophy: “Our ways of operating previously were focused on preservation and passive yield. The dynamic has fundamentally changed. We are now seeking substantial reinvestment into our business.”
One major pivot includes the diversion of dividends in favour of reinvestment, part of a broader strategy aimed at scaling the group’s growth pillars across industries.
He spotligh
