AS Bryden & Sons Holdings Limited (ASBH) is looking to double down further on its regional platform through additional strategic investments in production and warehouse capacity in several Caribbean markets.

The 100-year-old Trinidadian company has been building out its regional footprint over the last two years, with its latest acquisition of a 44.74 per cent stake in Caribbean Producers (Jamaica) Limited (CPJ) being a key pillar of its growth into new distribution segments. CPJ is a Jamaican manufacturer and distributor focused on the hospitality space in Jamaica, which is referred to as HORECA (Hotels, Restaurants & Catering) segment in the distribution space.

“There’s a big plus with regards to CPJ because it definitely balances AS Bryden’s business in that it will be earning US dollars in CPJ which helps AS Bryden’s. However, when we look at acquiring businesses, it’s not the only thing we’re looking for is to earn in US dollars. We look at the growth potential of the business. In the case of CPJ, we believe that there’s going to be a significant amount of room stock added to the Jamaican infrastructure,” said ASBH chairman Paul B. Scott at the company’s first annual general meeting (AGM) held on Tuesday.

ASBH spent $5.17 billon or US$32.82 million on the CPJ acquisition and is intending to up its position even further to take control or more than 50 per cent ownership in the coming months. CPJ currently generates most of its business in United States dollars from the Jamaican hospitality trade and from a 51 per cent stake in CPJ (St Lucia). This will serve as a key capital source for ASBH whose domestic market has a conversion issue from Trinidad & Tobago dollars (TTD) into other hard currencies.

Scott explained that the deal was funded by a mixture of internal cash and debt facilities from financiers. ASBH Chief Executive Officer (CEO) Richard Pandohie has taken over the reigns as chairman of CPJ while Nicholas Hospedales has been appointed CEO of CPJ effective July 9. ASBH directors Nicholas Scott, Michael Conyers and David Franco were also appointed CPJ directors last week as Christopher Berry, Konrad Berry, Camille Shields, Frank O’Dowd and Mark Hall resigned from the board.

“We’re building brand-new distribution facilities in Trinidad, as well as Guyana. As a result of that, we’ll be incorporating the infrastructure to do frozen and chilled products in those businesses, and hopefully we can leverage the relationships that we have at CPJ to grow that business outside of Jamaica,” the chairman responded on the potential synergies which can exist for the new business.

CPJ represents the second major acquisition this year following the 55 per cent acquisition in Stansfeld Scott (Barbados) Limited in February. Stansfeld Scott is a Barbadian distributor of wines, spirits and health supplements which falls squarely within ASBH’s strategy. Both businesses represent the opportunity of ASBH to acquire family-owned businesses, something that can potentially increase in the future.

ASBH is now working on completing a US$30-million central logistics hub in Trinidad which will streamline distribution in Trinidad and assist in the export thrust into the rest of the Caribbean. This will complement the new distribution facility being built in Guyana to support the food distribution business and assist the pharmaceutical business Bpi Guyana Limited, a 51 per cent owned subsidiary.

“We’re looking at building out our facilities in Trinidad. We do have a business called Genethics which we’re going to be upgrading and reinvesting and increasing the capacity of it. We’ve been looking at many opportunities in Trinidad for manufacturing as well,” Scott explained regarding the prospects for additional manufacturing in the Trinidadian market.

With respect to its 75 per cent controlled Guyanese subsidiary Ibis Construction Equipment Sales & Rental Limited, Scott added, “Guyana is growing very materially. The equipment business last year grew in excess of 40 per cent. We expect it to grow this year again by another 40 per cent. Guyana is essentially going through a complete transformation and that transformation will continue. What I can say very confidently is that it’s going to look differently from today and in order for it to look differently from today, there’s going to be a lot more construction and people are going to need more construction equipment.”

ASBH’s second quarter report which is to be published by August 14 will show the impact of Stansfeld Scott (Barbados) being consolidated into the company’s numbers for a full quarter. It will also be the first time that Bryden pi Limited will be a wholly owned subsidiary. However, ASBH will not recognize a share of profit from CPJ until the third quarter report which should be out by November 14.

ASBH’s first quarter showed a seven per cent rise in consolidated revenue to TT$629.79 million (J$14.22 billion). However, operating profit declined eight per cent to TT$45.85 million due to a weaker than expected performance from its premium beverage business in the shorter carnival season and non-recurring items that occurred in Q1 2023.

After accounting for higher finance costs and taxes, consolidated net profit was down 38 per cent to TT$18.75 million (J$423.38 million) with net profit attributable to shareholders at TT$15.43 million. Earnings per share (EPS) was TT$0.01 with the trailing twelve-month EPS at TT$0.08.

ASBH’s total assets were down four per cent to TT$2.10 billion with non-current assets at TT$667.41 million and cash at TT$143.23 million. Total liabilities decreased to TT$1.38 billion with shareholders equity closing the period at TT$721.31 million, of which, TT$677.06 million was attributable to shareholders.

ASBH closed Tuesday at J$40.43/US$0.2249 which leaves it up in 2024 with a market capitalization of J$56.18 billion (TT$2.42 billion). All AGM resolutions were approved, including the special item to amend the company’s by-laws for virtual shareholder meetings. A.S. Bryden shareholders are set to benefit from a TT$0.01323 dividend totalling TT$18.39 million on July 26 with Seprod to collect TT$9.94 million.

It was mentioned in prior times that ASBH was to have listed on both the Jamaica Stock Exchange (JSE) & Trinidad & Tobago Stock Exchange (TTSE) in 2022, but ASBH listed on the JSE Main Market in November 2023 and on March 13 on the JSE USD market. However, the TTSE listing continues to evade the company. Scott stated, “We’re working through that and we’re hoping that will be sorted out by the end of the year. We’re working with them [TTSEC] to be able to do that.”