DEMERARA Distillers Limited (DDL) enjoyed a good run in 2018, recording a 12 per cent increase in revenue and a 26 per cent increase in profits.

The rum distillery, in a media release on Sunday, announced that the growth experienced was strong in both local and international markets.

In 2017, DDL recorded $19.569B in revenue and a $2.6B in group profit after tax which now represents a $2.378B and $679M increase respectively.

The group profit before tax for 2018 stood at $4.362B compared to $3.551B in the previous year, representing an $810M or 23 per cent increase.

Earnings per share were $4.26 compared to $3.38 the previous year while shareholders funds increased by 16 per cent in 2018.

The release added that capital expenditure totalling $2.187B, incurred during the year, was all financed by self-generated funds.

Additionally, bank borrowing in the form of loans and overdraft, was reduced by $1.437B from funds generated by the group in the year.

Meanwhile, the net debt to equity ratio at the end of the year improved from 0.13:1 in 2017 to 0.06:1 in 2018 while an interim dividend of $0.25 a share was paid in December 2018.

The directors have recommended a final dividend of $0.85 per share which, if approved by the Shareholders at the upcoming Annual General Meeting, would result in a total dividend for the year of $1.10 per share.

This is compared to the previous year when the dividend payment totalled $0.80 per share.
“It is with great pleasure that I announce to shareholders that the 2018 financial year was another very successful year with excellent performance from our group. Revenue, both local and international, continued to show encouraging growth, while significant progress was made in key areas of diversification,” DDL Group Chairman, Komal Samaroo said.
Highlights of DDL Group’s 2018 performance show that the company focused on capital projects which support the core business and on projects which form a part of the ongoing programme of diversification.

On March 16, 2018, a Barrel Warehouse facility was commissioned which will see an increase DDL’s rum-ageing capacity by another 30,000 barrels.

In October, preparatory work commenced for the construction of a new and modern $465M blending plant which will utilise the latest digital technology.

Its completion is expected by the end of June 2019 and once finished, will improve operational efficiency, reduce costs and replace the existing blending operations.