Home' Trinidad and Tobago Guardian : July 18th 2013 Contents JULY 2013 • WEEK THREE www.guardian.co.tt BUSINESS GUARDIAN
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Berger Paints Trinidad td
(BPTL) is 70 per cent owned
by Lewis Berger (Overseas
Holdings) Ltd, which is a sub-
sidiary of Asian Paints (India)
Ltd. Lewis Berger also owns
51 per cent of Berger Jamaica and 100 per cent
of Berger Barbados.
Changes in financial position
As at its March 31, 2013 year end, BPTL
had total assets of $43.92 million. Of this sum,
the equity portion was $29.42 million. With
net debt of slightly less than $4 million, this
portion of its total capital of $33.4 million
represents less than 12 per cent. Having only
5,161, 444 shares outstanding, the book value
of each share was $5.70. At its current price
of $3.60, this represents a discount of almost
37 per cent.
With its current assets of $31.15 million
being comfortably greater than current liabilities
of $11.78 million, the company had working
capital of $19.37 million. In the year-end to
March 2012, working capital was only $17.55
At that time, current assets were $27.37 mil-
lion and current liabilities closed at $9.82 mil-
lion. Thus, there was a year-on-year cash flow
improvement of $1.82 million. One item that
helped this was the increase in trade receivables
by $3.8 million to $18.8 million from almost
$15 million at the end of 2012. This represents
slightly more than 80 per cent of the increase
in revenues of $4.7 million.
Its trade and other receivables of $18.8 mil-
lion were almost three times (2.86:1.00) the
$6.6 million value of its trade and other
In the previous year, the ratio of receivables
to payables was very similar (2.83:1.00); for
that period, receivables were $15 million and
payables were $5.3 million.
As at year-end 2013, inventories stood at
$12.25 million; this balance was 19.1 per cent
of its total revenue of $64.15 million recorded.
As at the 2012 year-end, inventories were
$11.64 million and represented 19.6 per cent
of that year s total revenue of $59.4 million.
Thus, we can see that inventory management
improved in the current period.
Changes in sales and profitability
In its first quarter report to June 2012 BPTL
reported a decline in sales of three per cent
in relation to the comparable period in 2011.
Further, it incurred six per cent higher costs.
In its efforts to maintain market share, selling
prices were not increased.
For that period the company incurred a loss
of $973k, which translated into a per share
loss of $0.19.
The third quarter is usually the best period
for Berger as it includes the very vibrant Christ-
mas shopping period. For the nine-month
period, which ended on December 31, 2012,
BPTL delivered higher sales when compared
to the 2011 period. This line item improved
from $48.4 million to $51.6 million or by 6.7
As it started the year on a very challenging
note, the profit for the nine-month period
was lower than for the comparative period in
2011. This measure came in at $1.24 million
(representing EPS of $0.24) for the current
period as against the $1.80 million (representing
EPS of $0.35) recorded for the earlier period.
Now that the full year results have been
released, we see that, in the last quarter (Jan-
uary to March 2013), the company recorded
a loss of $0.09 per share; this is because its
EPS moved from $0.24 as at the end of the
third quarter to $0.15 for the full year.
Revenues for the year improved from $59.4
million for the year to March 2012 to $64.15
million in the current period or by almost 8.0
Included in the 2013 sales figures were $662k
in sales to its associated Berger companies
with Barbados taking $416k and Jamaican
buying $246k. During 2012, total sales to these
companies were $1.20 million, with Barbados
accounting for $1.07 million and Jamaican
absorbing a modest $128k.
In 2013, exports were $6.14 million on which
it recorded a segment pre-tax profit of $771.6k.
Local sales accounted for $58 million but could
only deliver a pre-tax profit of $870k. No
doubt, this reflects the more competitive con-
ditions locally. In the 2012 period, exports
were $5.32 million and profit was $1.05 million.
Also in 2012, local sales were $54.1 million
and these sales contributed $1.81 million to
The gross profit margin, at 33.9 per cent,
was almost identical for both periods. In line
with changes in sales figures, this item
improved from 2012 s $20.16 million to last
year s $21.78 million.
Reductions were observed in finance costs,
which fell to $395k from the previous period s
$540.4k and advertising and promotion, which
declined from $1.11 million in 2012 to $906k
On the other hand, huge increases were
recorded for both administrative and selling
expenses. Administration costs climbed to $10
million from the earlier period s $9 million.
Much of this increase would have been under
the "other expenses" heading. Selling expenses
moved from $2.3 million in 2012 to $3.3 million
in the current period.
The net effect of these changes resulted in
a pre-tax figure for 2013 of $1.27 million; this
is a $982k decline from the $2.26 million
recorded for 2012.
Despite the lower 2013 profit, the tax take
of $483k was almost $70k higher than the
$413k paid for 2012. One of the contributing
factors to this increased charge was the higher
level of expenses that were not deductible for
tax purposes; in 2012, this item was $311k,
while in 2013 the figure increased to $660k.
Of lesser consequence, was the decline in
income that was not subject to income tax;
this figure fell from the 2012 value of $18.5k
to only $6.1k in 2013.
These changes resulted in an after-tax profit
for 2013 of $791.4k. This figure was $1.05 mil-
lion less than the $1.84 million recorded for
Consequently, EPS fell to 15.3 cents in 2013
from 35.7 cents recorded for last year.
With a good mix of local manufacturers and
imported products, the local paint market is
As part of the broader construction and
building industry, sales of paint and similar
products can be a useful gauge as to the levels
of economic activity. Fortunately, Berger, as
part of a larger group of companies, can draw
on extensive resources to help with its various
Support from Asian Paints
The Berger companies in the Caribbean
accounted for almost 14 per cent of the total
paint sales of 1,417 crores rupees (about
US$235.8 million or TT$1.51 billion) for the
Asian Paints Group.
For the 2013 fiscal period, sales for this
region grew by 15 per cent to reach 197.2 crores
rupees (INR) (approximately US$32.8 million
or TT$210 million) from the 2012 base of 171.8
crores rupees (INR) (US$28.59 million or
TT$183 million). More robustly, profit before
interest and tax rose by 47.4 per cent to 11.2
crores rupees (US$1.86 million or TT$11.93
million) from the 2012 figure of 7.6 crores
rupees (US$1.26 million or TT$8.09 million).
As a whole the Asian Paints Ltd Group had
2012/13 revenues from operations of 10,970.74
crores rupees (approximately US$1.825 billion
or TT$11.68 billion).
This was up by 13.9 per cent from the 2012
figure of 9,632.24 crores rupees (U$1.6 billion
or TT$10.26 billion). In addition, profit attrib-
utable to shareholders rose by 12.7 per cent
from 988.73 crores rupees (US$164.5 million
or TT$1.053 billion) in 2012 to 1,113.88 crores
rupees (US$185.3 million or TT$1.186 billion)
for the year ended March 2013.
With a strong partner to help guide it
through the rough patches ahead, Berger Paints,
in Trinidad and the wider Caribbean, is likely
to continue making a useful contribution to
the painting industry and grow from strength
(Note: the word "crores" is used in the Asian
numbering system; it is equal to ten million
under our system. Currency conversions are:
US$1 = 60.1 Indian rupees (INR) and TT$6.4.)
Berger Paints Trinidad 2013 results
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