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The House of Angostura, headquarters for Angostura Holdings Ltd.

In an unaudited summary of its consolidated financial statements for the three months ended March 31, 2020 Angostura Holdings Ltd has recorded a first quarter profit of $13.096 million.

The company noted that in the first quarter its profit before tax grew by nine per cent or $1.7 million over that of Q12019.

However, it said the Group’s profit margins were impacted by increased operating expenses of 17.6 per cent or $8.6 million over the comparative period as well as foreign exchange losses occurred in Q1 2020 due to devaluation of major foreign currencies as a direct result of the economic impact of COVID-19.

“Fiscal 2020 was off to a promising start but we are mindful that the COVID-19 pandemic is likely to impact our local and foreign demand, supply chain and distribution and the time required to complete improvement and repair to our waste water treatment plant,” the company said.

Adding it is not daunted, Angostura said it will continue to innovate and be proactive so as to conduct its operations in a manner that takes account of the changing local and global market as these months unfold.

The company cited that its bitters segment recorded the largest segment growth over the comparative period last year of 42 per cent or $11 million due to increased sales in the US, UK and South Africa which offset the decline in the Australian market.

“This is in keeping with the company’s strategic target for growth and expansion in foreign markets,” the company said.

It added local rum revenue grew by eight per cent or $6.4 million as the market acceptance of new flavoured rum blends, particularly White Oak Sorrel continued into January 2020.

In that month the company added White Oak Coconut to the portfolio which it said gained momentum over Carnival 2020.

Angostura added that the impact of rejuvenated marketing campaigns for LLB was seen by the increase in revenues from that segment, up 56 per cent or $2.3 million over the comparative period last year.

“This was directly due to increased demand locally and throughout the Caribbean,” the company noted