Gas acquisitions led the Jamaica operations of Massy to increase its revenue by one third in the last financial year. The purchases pushed year on year revenue to J$25 billion (US$160 million).
Massy, which already has gas operations on the island, last year acquired IGL and Industrial Medical Gases (IMG) businesses.
“Our purchase of IGL allows us to retain our competitive advantage in a robust and active Jamaican Liquified Petroleum Gas (LPG) market and maintain our high standards of service delivery to both residential and commercial customers,” said Vaughn Martin, the head of the gas division at Massy, in its annual report.
The revenue from Jamaica accounts for roughly 7.5 per cent of TT$15.7 billion in total revenue of the regional conglomerate which started in Trinidad & Tobago.
The company employs more than 700 persons in Jamaica, occupying 123,000 square feet of warehouse space and 20 production filling and distribution plants.
Looking at the gas division, the Jamaica operations contributed 37 percent of that revenue, up from 28 percent last year. In the process, Jamaica overtook Trinidad and Tobago (T&T) as the leading earner of revenue for the Gas Products portfolio, as T&T’s percentage of revenue fell from 35 per cent to 25 per cent year-on-year.
The group operates other divisions in Jamaica, but gas remains its largest. The report said distribution in Jamaica “experienced challenges associated with the loss of
a major line” and the impact was partially offset by the addition of new lines throughout the year.
According to Martin, “... despite facing increased competition in Jamaica following the IGL acquisition, we have managed to maintain our volumes and our position as the market leader in LPG distribution”.
The 100-year-old Massy, which operates in several Caribbean countries, the United States, and Colombia, achieved an 11 per cent rise in revenue year-on-year.
Massy describes itself as an investment company with three main investment portfolios: Integrated Retail, Gas Products, and Motors and Machines, which together contribute 99 percent of revenue, and a financial services line of business. The company is listed on the Trinidad and Tobago and Jamaica Stock Exchanges.
Looking to the near future, president & group CEO David Affonso said the group aims to double its revenue to US$4 billion, or over TT$30 billion, by 2030 through organic growth, and disciplined mergers and acquisitions and capital investments.
“Achieving this goal will provide the scale and scope to ensure that the group is more recognisable on a global stage, and is able to attract international capital to support further growth and generate even greater value to our shareholders in the medium to long term,” Affonso stated.
Profit before tax declined for the Group, which employs more than 13,000 people in more than 60 companies across the region.
“The underlying performance of our core businesses was commendable, delivering 11 percent revenue growth and 33 percent growth on net cash flow from operations after interest costs,” stated Massy group chairman Robert Bailey in the annual report.
However, Massy’s stock price has done poorly on the Jamaica Stock Exchange. The stock has lost 38 percent of its value since 2019, with a $100 investment in 2019 being worth $70.93 in October 2024.