…Reis ties increase in revenues to growth in unit sales

BANKS DIH Limited has declared an unaudited after taxation profit of $1.68B at the half way stage of its financial year 2019 – an increase of $242.7 Million or 16.9%, the company’s chairman, Clifford Reis has said.

In its half year financial report contained in today’s edition of this newspaper, Reis also said the group’s third party revenue for the six-month period ended 31 March 2019 was $16.73 Billion compared to $15.83 Billion for the corresponding period in 2018, an increase of $898.4 Million or 5.7%. The unaudited Profit before Taxation for the Group for the six months ended 31 March 2019 was $2.98 Billion as compared to $2.61 Billion achieved in 2018, an increase of $377.0 Million or 14.5%.

Revenue generated by the Company was $15.11 Billion compared to $14.28 Billion in 2018, an increase of $830.0 Million or 5.81%. The unaudited Operating Profit before Taxation for the Company was $2.45 Billion compared to $2.21 Billion in 2018, an increase of $237.6 Million or 10.8%, while the unaudited Profit after Taxation was $1.68 Billion, compared to $1.43 Billion in 2018, an increase of $242.7 Million or 16.9%.

Citizens Bank Guyana Inc., a 51 % owned subsidiary of the Company, recorded an unaudited Profit after Taxation for the period ended 31 March 2019 of $357.5 Million compared to $277.7 Million achieved in 2018 resulting in an increase of $79.8 Million or 29.0%. Reis said Citizens Bank’s efforts will be directed to providing solutions to the challenges which the emerging petroleum sector and technological innovations will provide. “We are optimistic that the Bank will generate an improved performance which will result in increased shareholder value,” Reis said.

He added that the company’s continued good performance in the first half year was due to the increase in revenues which came from the growth in physical case/unit sales. There were also better yields derived from the conversion of raw material into quality finished products and efficiencies achieved in their route to market distribution systems, Reis noted.

He said during the period under review, the Company’s Capital Expenditure was focused on the completion of its potable water storage capacity and the addition of increased fermentation and storage capacity for the Winery and the installation of a new CIP System for the Bottled Water Plant. Additionally, Reis said the transition to Solar Power at the Demico Restaurants has contributed to the reduction in energy consumption costs.

“We can advise with a sense of pride that during the period under review our consumer accepted I-Cee Cream Soda, I-Cee Banana and I-Cee Big Red along with Banks Malta Supreme, Banks Sorrel Shandy and Banks Champagne Shandy were awarded Gold Medals by the Monde Selection International Quality Institute.” According to him on 9 February 2019 the company also welcomed the UniCarriers Forklift Brand to Guyana “as we launched a local dealership, which will make available to the local market UniCarriers Products which will include Electric Rider Lift Trucks, Electric Narrow Aisle Lift Trucks, Electric Pallet Trucks, Internal Combustion Engine Lift Trucks with Cushion Tyres and Internal Combustion Engine Lift Trucks with pneumatic Tyres.”

Reis told shareholders that these products will be available at their Demerara Park Facility. He also mentioned that the directors have approved an interim dividend of $0.30 per share unit to all shareholders whose names appear on the Share Register as at 17 May 2019. The cost of this dividend payment will be $255.0 Million.