Page 36 - Neal and Massy Holdings Annual Report 2012

34 2012
In 2012, the Distribution & Logistics Line of Business
had a successful year, in which significant progress was made
toward laying a foundation for future growth. The alignment of
the companies along a “vertical” line of business has facilitated the
identification and transfer of best practices between companies. The
alignment has also accelerated the pace at which we can realise
synergies, as we build a truly regional organisation. In furtherance
of this objective, we have revisited and modified our commercial
and go-to-market structures as necessary to ensure that all major
growth initiatives are adequately resourced.
Despite a slowdown in the Trinidad and Tobago economy,
Marketing & Distribution (M&D) exceeded both its revenue and
its profit targets. The Pharmaceutical division, in particular, with a
new focus on the health care segments of the industry, delivered
exceptional sales growth. The Food and General Merchandise
division also performed creditably and, continuing on its path toward
building critical mass, acquired some new agencies, including Pine
Hill Dairy’s portfolio.
In preparation for future expansion, M&D acquired a five-acre
property, formerly owned by Consolidated Appliances Limited,
which is strategically located on the same industrial estate in Macoya
as M&D’s main complex. The property, comprising 126,000 square
feet of warehouse space and an office block, has been completely
refurbished and outfitted. It will eventually house all the company’s
dry warehousing as well as the marketing and sales offices for
the Geddes Grant operations. M&D also piloted an automated
replenishment system, which is expected to improve efficiency
and cost in serving larger retail customers. During the year, M&D
was once again recognised for excellence by several international
suppliers. It continues to build strong, committed relationships with
its principals and its customers.
In Barbados, SBI Distribution Inc. (SBI) has started its journey
towards ISO certification. We have established an alternate
distribution operation in Dacosta Distribution, which will work in
tandemwith SBI Distribution to grow the Group’s business there. SBI
showed strong revenue growth over the previous year mainly due
to the expansion of the range of Pine Hill Dairy products, which the
company now co-distributes. A significant improvement in working
capital management and double-digit growth in the company’s
down-trade performance were also realised, as management moved
to contain cost, while simultaneously extracting any additional
growth. In the end, however, these efforts proved insufficient
to offset competitive margin pressure, which together with
increased sales of lower-margin commodities, resulted in company
performance marginally below that of the previous year.
INTEGRATED RETAIL: Distribution LINE OF BUSINESS
DAVID AFFONSO Group Senior Vice President & Executive Chairman
Marketing & Distribution
SBI Distribution Inc.
Dacosta Distribution Limited
Knights Limited (Rainbow Paper Products)
NMH Trading & Distribution (Jamaica) Limited
Windsor Laboratories Limited
Neal & Massy Inc.
Melville Shipping Limited
Huggins Shipping & Customs Brokerage Limited
Booth Steamship Company (Barbados) Limited