Barbados-based conglomerate Goddard Enterprises Limited (GEL) has announced a substantial financial upswing for its fiscal year ending September 30, with net profits climbing to $76.8 million—marking a $24.3 million increase compared to the previous year. This impressive performance was largely driven by a dramatic reversal in its cocoa processing operations in Ecuador.
The company’s earnings per share rose to 27.9 cents, and shareholders are set to receive a final dividend of three cents per share in late February. Chairman Charles Herbert and Managing Director Anthony Ali attributed the strong results primarily to improved manufacturing performance, particularly highlighting the remarkable recovery of their Ecuadorian subsidiary, Ecuakao.
Ecuakao, which had suffered significant losses of $21.2 million the previous year, generated a robust profit of $16.7 million this fiscal period. Company leadership cited increased cocoa production volumes, expanded sales, and favorable pricing for raw cocoa beans as key factors behind this turnaround. The manufacturing division’s return to profitability was largely contingent on Ecuakao’s recovery.
Despite these gains, the company incurred substantial costs associated with its financial strategy. GEL allocated $8.5 million for protective measures related to cocoa futures trading and provisioned $4.1 million for potentially irrecoverable customer debts.
The conglomerate’s consumer products joint venture with Trinidad and Tobago’s Agostini Limited, Acado Limited, delivered another strong performance, with most markets showing positive results despite operational challenges in St. Lucia.
Goddard Catering Group reported solid revenue growth but faced profitability pressures due to losses at associate companies in Costa Rica. The group recorded $10.8 million in expected credit loss provisions from two associates and wrote down $5.4 million in goodwill from its Panama catering business, which has been struggling with intensified competition at the country’s main international airport.
The building supplies division achieved an 8.5% revenue increase while maintaining operating profits consistent with the previous year, though higher interest and tax expenses reduced net profits from this segment.
Conversely, the automotive division experienced a challenging period with weak vehicle sales in Barbados and Jamaica, inventory reduction efforts, increased financing costs related to the GAC brand launch, and a $1.3 million property revaluation loss in Barbados.
The smaller shipping and services division performed in line with management expectations, according to company officials.