Demerara Distillers Limited (DDL), world renowned for its El Dorado Rums, recorded an after-tax profit of $809 million for 2009, a 2.5 percent increase compared to 2008.
The media were taken on a tour of DDL yesterday.
Chairman of DDL’s Board of Directors, Dr. Yesu Persaud, in his report for last year , said DDL’s yearly turnover was $8.371 billion for 2009 compared to $8.821 billion in 2008. The company’s profit before interest and taxation was $1.762 billion compared with $1.682 billion in 2008, and profit after taxation was $809 million as against $789 million in 2008.
The Group’s (DDL and its subsidiaries) turnover increased by 2.5 percent from $12.064 billion in 2008 to $12.364 billion in 2009. The Chairman in his remarks said that in the context of the extremely challenging international and regional environment, the Group had a relatively good year, recording profits before interests and taxation of $2.165 billion compared to $1.971 billion in 2008, a 9.8 % increase. A ten-year review from 2000 to 2009 of the parent company and subsidiaries included in the DDL’s Annual Report 2009 revealed an increase in turnover.
It was noteworthy, according to Dr. Persaud, that export rum sales represented 33% of the total rum sales in 2009. He stated that the diversified nature of the Group allowed it to withstand considerable shocks in the past two years which caused companies of all sizes and in most industries to collapse. “The challenges successfully faced by the Group are testimony to the prudent foresight of the Board of Directors’ two pronged strategies for brand building and diversification. The performance of the parent company and the significant increase in profits from the associated companies were primarily responsible for the improved results of the Group in 2009,” the Chairman noted.
On the international market, Dr. Persaud stated that the global recession had a serious negative impact on bulk spirits sales. However, in 2009, customers recommenced their purchasing practices and bulk sales saw a robust rebound. Despite the recession, significant market successes continued with the branded packaged products.
“We continued the expansion of our portfolio of products with the addition of two new and very impressive products: El Dorado Cask Aged 8 Years Demerara Rum and El Dorado Deluxe Silver Aged 6 Years Demerara Rum. Both have been extremely well received and have brought greater balance in our rum portfolio,” Dr. Persaud said.
The company’s focus over the years has been to tread a “green” pathway and as such has invested in three new projects: the New Bottling Plant, the Bio-Methanisation Plant and the New Multi Column Still. The New Bottling Plant, which was commissioned mid-2009, has increased the efficiency of the company’s production capacity to such an extent that the company has reduced the number of shifts and hours necessary to meet the demands of consumers. The New Multi Column Still will be more efficient as a result of better fuel and raw material usage. The Bio-Methanisation plant will capture the waste distillery water, store it and convert it into biogas. These projects are scheduled to be completed before the end of the year.
The Chairman reiterated that DDL’s growth and development will progress as the Group continues to diversify and improve efficiency. “The year 2010 is expected to be a better year; but the real gains will be seen in 2011 and 2012; when negotiations are concluded with other international companies.”
In brief remarks, DDL’s Vice President – International Marketing, Komal Samaroo told a press conference that the company’s policy is to be competitive on the international market stage and leave carbon footprints as small as possible; and as such they have achieved a lot last year and continue to push forward.
Mr. Samaroo talked about the company’s performance despite the global financial crisis in 2009, when they marked a 14% increase in profits, and noted that their gross assets also increased last year.
He reported that 2009 overall was a good year but noted that there were some difficulties in the bulk and branded businesses overseas and added that there was a growth of 25% in volume overall.