-declares a whopping $1.1B net profit
AT A TIME when several companies locally and internationally are turning out gloomy reports for 2009 as a result of the continuing challenging economic times, beverage giant, Banks DIH Limited continues to excel and show growth, and in the process create its own bit of history.

The history-making feat at reference is the company’s having recorded an after tax profit of in excess of $1 billion for financial year 2009, according to Chairman and Managing Director, Mr Clifford Reis in his annual report for the year under review.

The $1.121B net profit is an increase of $271M, the equivalent of 31.9 per cent, as against the $850M the company made the year previous.

Profit before tax, Reis says in the report, was a whopping $2.345 billion, an increase of $377M or 19.2 per cent on the $1.968 billion the company made the previous year (2008).

After tax profits attributable to shareholders, he said, came to $1.286 billion, reflecting a 23.4% increase of $244M on what obtained in 2008, while the company’s net tax turnover amounted to $14.325 billion, an increase of $1.075 billion or 8.1 per cent.

According to the report, Banks DIH and the Guyana Revenue Authority (GRA) came to an amicable settlement with regards to the Excise Tax liability, whereby it was agreed to accept an adjustable chargeable value as the basis for determining the amount of tax payable. As a result of this arrangement, Reis said in his report, the provision became effective as of September 2009.

He told attendees at the Company’s 54th Annual General Meeting (AGM), held late yesterday at Thirst Park, that in the fiscal year under review, the company “continued to derive very substantial savings from its independent power generation system.”

Physical sales, both local and export, he said, “were also higher than the previous year, and meaningful savings and efficiencies were achieved in almost all areas within the company.”

Alluding to the company’s projection for this year (2010), Reis reported that significant investments will be made in the area of plant and equipment, as an increase in demand for the company’s products and brands has propelled the company to increase its production capacity, though not at the expense of efficiency and quality.

Touching on the performance of Citizens Bank Guyana Inc, of which Bank DIH is a majority shareholder (51%), Reis said the banking institution did not do so well in 2009, recording a 10.7 per cent decline in profit, which equates to a loss of some $47M, down from the $437.7M recorded for 2008. He gave as the reason profits fell “an impairment loss” in the sum of $170.2M “arising from investments made overseas.”

Had this loss not occurred, he said, the profit for the banking institution would have surpassed what was achieved in 2008.

Meanwhile, dividends received from Banks Holdings in Barbados for 2009 amounted to $610 million, while that which was paid to said company was $90 million, based on investments made with each other.

A first interim dividend of $0.12 per unit share, as directed by the Board, was paid on May 18, 2009, while a second interim dividend of $0.12 per unit share was pid out on October 19, 2009. A final dividend of $0.21 per unit share has been recommended and will be payable tomorrow (January 25, 2010), thus bringing total dividends for the year to $0.45 per share with an overall cost of $450 million.

As Reis observed: “We continue to strive for the highest standards of corporate integrity at all levels of the Group, as good corporate governance is integral to good business.”

He said the Company not only takes an active interest in various social activities countrywide, but also “embraces relationships through the support given to culture, education, sports and other community-based activities.”

In closing, he expressed his gratitude to the company’s executive team and all its employees for their continued dedication towards ensuring the growth and development of the Group.