Highest recorded sales in its history

Durrant Pate/ Contributor

Trinidad and Tobago’s renowned beverage company, Angostura Holdings has crossed the TT$1-billion revenue threshold, which is a record-breaking performance for the year ended December 31, 2022.

After two years impacted by COVID-19, Angostura is exhibiting much resilience, reinforced by its investment to support future growth of its international business and the local market’s full re-opening in fiscal year 2022. In its year-end report, Angostura achieved record revenues of TT$1.03 billion, which represents growth of 11.8% year-over-year.

According to company Chairman, Terrence Bharath, “this historic achievement of crossing the one-billion-dollar revenue mark is a remarkable one in the local manufacturing sector and represents the highest recorded sales in the history of the company. International markets drove 60% of our revenue growth, primarily due to increased demand for our Angostura® Bitters in North America and EMEAA (Europe, Middle-East, Africa & Asia).”

Recovery of on-trade segment

The company also experienced recovery of the on-trade segment with a heavy focus on cocktails in Europe and consolidation of its distributor network to drive efficiency in the US market. Locally in T&T, growth was driven by rum sales and Angostura’s imported portfolio.  

Given the removal of most COVID-19 restrictions in 2022, the on-premise channel was fully re-opened, compared to closure for most of the year in 2021. The Group continued to experience the aftermath of COVID-19, including supply chain disruption, the escalating cost of production related to raw material price increases and general global inflationary pressure. 

Bharath reports that, “this adversely impacted the cost of raw materials and production overheads across all product categories, resulting in a decline in the gross profit margin to 46%, compared to 47% in 2021. The Group engaged in planned market recovery costs, by investing in innovation and reinvigoration of our markets.”

He points out that hosting of the Global Distributor Forum in New York, USA was critical to re-establishing connections with distributors and realigning the management’s strategic plans for international growth. Additionally, marketing expenditure aligned with the long-term innovation strategy and included brand asset development for Tamboo Spiced Rum.

Increased local marketing spend

Locally, marketing spend was increased to support on-trade initiatives, as a COVID-19 recovery strategy for the on-premise channel. Increased local promotions and the launch of Ginger Chill also resulted in increased local brand marketing expenditure in 2022.

As a result of this planned investment in the expansion of its portfolio and the deepening of relationships within its markets, combined with increased cost of production and distribution driven by global economy, Angostura’s operating margin declined to 18% compared to 21.7% in 2021 and pre-tax profit closing at TT$204 million, which is 5% below the prior fiscal year.

The Board of Directors has recommended a final dividend in respect of the year ended December 31, 2022 of TT$0.25 per share, which will result in the total dividend declared for 2022 remaining consistent with the prior year.  This dividend will be paid on July 31 to shareholders on record as at July 12.