MANAGING Director of Banks DIH, Clifford Reis, has announced a $600M payout to shareholders as a special interim dividend from the $1.146B it has acquired from the sale of Banks Holdings Limited.

On December 2, 2015, Banks DIH Limited sold its holding of ordinary shares in Banks Holdings Limited (BHL), which amounted to 4, 358,815 ordinary shares or 6.7% of the issued share capital of that entity, to SLU Beverages Limited. The transaction was carried out on the Barbados Stock Exchange at a price of Bds $7.10 per share.
Reis, in addressing shareholders at Banks DIH 60th Annual General Meeting at Thirst Park, explained that shareholders stand to reap tremendous benefits from the payout, which will take effect on February 15.
“So the shareholders are going get 35 cents on every share on the final dividend on Monday morning; and then they will get 60 cents on every share on the 15th February, so that will give them 95 cents on every share that they own, which is going to cost the company $950M.”
The first interim dividend of $0.17 per share unit was paid on May 28, 2015, while the second interim dividend of $0.17 per share unit was paid on October 22, 2015. The final dividend of $0.35 per share unit, which has now been recommended, brings the total to $690M or $0.69 per share unit, excluding the $0.60 which will be paid on February 15.
One shareholder, despite hearing of the massive payout, expressed his concern over the existence of Banks DIH (Guyana), pointing to the decision taken by the company to sell its BHL shares in Barbados.
“Banks Guyana is not up for sale,” the Managing Director said in response to the concern raised by the shareholder on Saturday. He explained that the company will acquire “greater market exposure” from the sale, paving the way for it to expand its market locally and internationally. SLU produces Corona, Stella Artois and Skol among other beers that Banks DIH (Guyana) is willing to produce here . “It is not that Banks Guyana Brewery can’t manufacture foreign beer. And all the investments we have done, it makes it easier for us to win a contract to do an international beer,” explained an optimistic Reis.
Banks DIH, despite the obstacles in the international market, is tapping into three States in the United States of America. “In the rum industry, you know for many years we have been trying to sell our rum overseas and so we finally signed a contract with a company called Royal Wines in New York and we have sent out two containers of rum so far; so they are going to move to Virginia and Florida,” he further explained.
Although consumers’ confidence eroded in the lead-up to the May 11, 2015 General Elections, Banks DIH raked in a profit of $2.569 billion after tax, when compared to the $2.265 billion in 2014, representiing an increase of $304.0 million or 13%.
“This improvement was as a result of the increase in physical sales by 3%, an increase in revenue by 4% and a reduction in operational expenses by 4% due to internal efficiency measures and favourable material prices,” Reis explained.
The group’s turnover net of taxes was $24.875 billion compared to $23.695 billion in 2014 – an increase of $1.180 billion or 5%. Its operational profit before tax was recorded at $5.285 billion compared to $4.971 billion – an increase of $314.0 million or 6.3%.
“The group’s profit after tax attributable to shareholders was $2.945 billion compared to $2.660 billion, an increase of $285.0 million or 10.7%. The Group’s net asset value per share has increased from $25.9 by 10% to $28.6 and the Group has increased its dividend proposal to shareholders to $0.69 per share unit resulting in an overall cost of $690.0 million,” the Chairman further pointed out.
This was achieved at a time when the local commercial zone had experienced a drop in sales during and after the 2015 Elections. “Closer to home, consumer confidence was eroded in the run -up to the last elections cycle and the post-elections events which resulted in a contraction of consumer spending. In spite of these challenges, we continue to adapt to the realities of operating, in a rapidly changing business and social environment. We are able to utilise the collective knowledge and experience base which has been assembled over the years of our existence,” he explained.
Banks DIH also used the opportunity to acknowledge with awards its employees who have been working with the company for 20 and 25 years. Four schools, North Georgetown Secondary, New Campbellville Secondary School, Vreed-en-Hoop Secondary and Montrose Primary, also received monetary awards.