Sterling records $49.9 million profit after tax at mid-year

STERLING Products Limited has recorded a profit after tax of $49.9 million for the period ending June 30, 2019 compared to $43.9 million for the same period last year.

This was according to the company in its interim financial report for 2019. Chairman of the Board of Directors of Sterling Products Limited, Dr. Leslie Chin, in the chairman’s report, said the recorded profit after tax represents an increase of 13.6 per cent or $6 million.
The financial statement showed that the company is growing consistently. On that note, Dr. Chin said turnover increased by 12.9 per cent over the corresponding period and profit before tax was $71.3 million.

Expenses for the period was $473.1 million compared to $432.9 million for the same period last year. This, Chin said, was due to increases in employment costs, fleet refurbishment and selling and distribution expenses.

The company’s energy cost has also increased by $21.4 million when compared to the same period last year. The increase was due mainly to constant price increase during the period.

According to the company’s website, Sterling Products Limited was incorporated as a Public Limited Liability Company on October 15, 1954, with an authorised share capital of 200,000 ordinary shares with a par value of $10.

It commenced operations with the production of margarine, lard, ghee and soap.
The company began exporting Golden Cream Margarine to Dominica in November 1957.
It embarked on revitalising operations by modification of the soap plant and commissioning of a new plant to improve production of edible fats.

Sterling had also commissioned a new plant and a cold room for ice cream production. The company continued to improve its operation in 1974 by acquiring a versator to improve the quality and quantity of detergent produced. It also later acquired the machinery for packaging margarine in tub containers.

In 1998, the Beharry Group of Companies acquired a majority shareholding in the company. The company’s share capital increased to 20,000,000 ordinary shares in 2000 for the facilitating of its planned rebuilding programme.

Businesses are projected to do even better going forward, especially with budding oil and gas industry on the horizon for Guyana.

Guyana had been listed as the fastest growing economy in the world, with a projected growth rate of 16.3 per cent from 2018-2021.

According to the NASDAQ Stock Market, Guyana’s economy, with a Gross Domestic Product (GDP) of $3.63 billion, a growth rate of 4.1 per cent in 2018 and 4.6 per cent in 2019, is expected to further grow by 33.5 per cent and 22.9 per cent in 2020 and 2021 respectively.

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