-expects consistent growth for second half of the year

GUYANA Stockfeeds Incorporated (GSI) has recorded a 30 per cent increase in profits for the period January to June, 2019.

Chairman of GSI, Robert Badal, in the company’s interim report, said the results for the first half of the year showed an increase in sales of seven per cent over the corresponding period last year, resulting in a 30 per cent increase in profits after tax.
Sales increased to $3.6B compared to $3.4B and profits were $160M compared to $123M in 2018.

Actual sales of feed, rice and day-old chicks remain stable. Profits after tax were higher on account of lower grain prices.

“We foresee the outlook for the second half of the year to mirror the first half despite the prevailing shortage of chicken on the local market, as we continue to increase our hatching of day-old chicks to meet Christmas demand,” said Badal.

There are, however, some concerns about poor quality of paddy from the autumn crop, resulting from paddy bug infestation. This, he said, would constrict the company’s margins on rice exports.

GSI traces its roots back to 1960 when it was established with its main purpose of supplying animal feed to Guyana’s growing livestock sector. In 1975, as part of the government’s strategy, the business was nationalised only to be put back into private ownership 23 years later when the state brought in a strategic partner to reorganise the business, which was losing market share to imported feeds.

After an initial consolidation period under new management, GSI is now a growing conglomerate with interest in the livestock, rice, and edible oil sectors, being strategically located in an industrial park at Farm, East Bank Demerara at the centre of Guyana’s poultry belt with access to its own wharf facility.   GSI’s objective is to be the local market leader in all sectors in which it operates in order to benefit from the synergies created by operating in related sectors, control sources of raw materials, diversify business risk and ensure rapid and sustainable growth in shareholders’ value and return. In this regard its strategy is growth through diversification into export-oriented production.