DDL records $2 billion profit for 2009

BEVERAGE giant Demerara Distillers Limited (DDL) has reported a profit of over $2 billion for 2009 at the company’s 58th Annual General Meeting (AGM) held under the theme ‘Treading the green pathway’ last Thursday at the Diamond Complex, East Bank Demerara. Chairman of the Board, Dr. Yesu Persaud, who made the announcement, said the company’s profit before interest and tax for 2009 was $2.165 billion. The hundreds of shareholders gathered at the Diamond complex, East Bank Demerara, were also told that dividends would be paid at 45 cents per share.
“DDL had an exceptionally good year in 2009. The first six months were not as good but we were able to come out with flying colours in the last six months,” the Chairman said, attributing the company’s success to the hard work and dedication.
He explained that all sections of the company’s operations did well despite the global financial crisis.
“We’ve done well in every respect otherwise we couldn’t have achieved the results we have…Your directors’ decision to start subsidiaries overseas was the right one,” Persaud declared.
Relative to the company’s international performance, he stated that Holland has provided a new market for the company and it is one investment that paid for itself in the first year.
In St. Kitts, he said, while the show of profit was not as good as 2008 the performance was understandable considering the fact that global conditions impacted the country.
Persaud was proud to disclose that operations in the United States returned a healthy profit.
Canada, also, he said was profitable and showed signs of growth.
However, in India, Persaud noted that the entity was not as profitable but the losses have been reduced and a programme to restructure the company there is underway. He added that this initiative should be completed by the end of the year.
Expansion
DDL’s Chairman made it clear that the company will be continuing its expansion programmes.
“The whole expansion programme will cost $22M…The European Union is throwing in less than one third,” he said.
The Chairman noted that the remaining funds were raised through shareholder support and self generated funds.
A new bottling plant made operational last year, valued at $8M, was hailed, by Persaud, as modern technology at its best, who added that the new facility will produce a product that responds to market changes.
He highlighted that apart from the bottling plant, other new initiatives have already started paying for themselves.
Persaud, in his report to the shareholders, said DDL’s diversification programme is heading for growth and development.
He added that 2010 is expected to be a better year, even though real gains from the newer undertakings will be seen in 2011 and 2012 when negotiations are concluded.
In reflecting on the company’s 2009 performance, Persaud said, “We at DDL are confident that the company has been preparing to be as good as ever and even better than many First World distilleries.”
On another note, alluding to the theme of the AGM, Persaud stressed the importance of going green if the Earth was going to be preserved for future generations.
The Demerara Distillers Limited
The international company has subsidiary companies in Trinidad and Tobago, Peru, the United States and Holland. The company operates a bottling plant in St. Kitts, and has associated companies in Canada, and India.
Recently, Halewood International of the United Kingdom appointed Demerara Distillers Limited as the producer, bottler and distributor for the ever-popular RED SQUARE range of drinks for the Guianas, the Caribbean, South America and the United States.
At home, Demerara Distillers in addition to its core operations of rum distilling, and bottling, is involved in the production of non-alcoholic beverages.
In addition to the company’s own flavorful brand of the SOCA soft drinks, the company holds the franchise for the production and distribution of the world famous PEPSI, SLICE and 7UP.
For the non-alcoholic drinkers, Demerara Distillers packages fresh fruit juices from the company’s own farm. The TOPCO juices, unlike the many concentrated drinks on the market, are made of fresh fruit, and are available locally and across the Caribbean.
Apart from beverages DDL operates in other arenas, namely distribution and shipping and communications.
Distribution Services Limited (DSL), the distribution arm of the company was formed in 1993. Today, this company is one of the leading distributing companies in Guyana, and boasts such principals as Johnson and Johnson, Neutrogena, and NESTLE.
Shipping, according to the DDL, came after recognising the need to ensure its customers of prompt and reliable delivery service. In this light, DDL inaugurated its shipping company; Demerara Shipping Company in 1994. Demerara Shipping now boasts very modern wharf and berthing facilities and principals such as Bernuth Lines and Europe Caribbean Lines.
In the communications industry DDL was the first company in Guyana to provide Internet service, via Solutions 2000.
Additionally, the company is also involved in construction and engineering service, as well as fish and shrimp harvesting with both local and overseas companies.
According to DDL, their objective is to increase market share by diversification, product and market development in the domestic and international markets, as well as build customer satisfaction through quality, service and value.

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