BANKS DIH Group has seen an after-tax profit attributable to shareholders of $1.602 billion in 2010, up from $1.286 billion the previous year, an increase of $316 million or 25 percent, as the Group records yet another exceptional year of growth. This was disclosed yesterday at the company’s 55th Annual General Meeting held at its Thirst Park head office in Ruimveldt.
According to the Chairman’s Report, net profit increased from $1.121 billion in 2009 to $1.362 billion in 2010, reflecting an increase of $241 million or 21 percent. Profit before tax for the company was $2.226 billion, compared to $1.838 billion in 2009, an increase of $388 million or 21 percent.
Chairman of the Board of Directors, Mr. Clifford Reis said the Group’s third-party revenue increased from $15.9 billion to $18.3 billion, an increase of $2.6 billion or 14 percent. Profit before tax for the Group in 2010 was $3.081 billion, up from $2.345 billion in 2009, an increase of $736 million or 31 percent.
Turning to the company’s 51 percent-owned Citizens Bank, Guyana Inc., Reis said the subsidiary improved its revenue from $1.789 billion to $1.937 billion, an increase of $148 million or 8 percent. Profit after tax for Citizens Bank was $535 million in 2010, compared to $391 million in 2009, an increase of $144 million or $37 percent.
According to the Chairman, the increased profitability was due to increased interests and other income. Total assets for Citizens Bank increased by $6.2 billion, from $20.9 billion in 2009 to $27.2 billion in 2010. Earnings per share for the Bank were $8.99, compared to $6.57 the year prior.
Banks DIH Limited’s Board of Directors declared a first-interim dividend of $0.14 per share, which was paid on May 17, 2010. A second-interim dividend of $0.14 per share was paid on October 14, 2010.
Reis said the company’s improved financial results for 2010 were  a result of an increase in physical sales by 17 percent, an increase in selling prices, higher export sales, efficiencies derived from the restructuring of the company’s operations, the enhancing of its distribution network by the acquisition of new vehicles for its sales fleet, and the increase of Citizens Bank Guyana Inc’s profit by 37 percent.
During the year under review, the Company continued its programme to optimize its manufacturing processes to improve production and quality and the distribution of its beverage and food products. “This is evidenced in the acquisition of and installation of a new Krones Bottle Washer for our Beer Bottling plant and new equipment for food preparation at our restaurants,” Reis said.
He said too that the Company’s Plant and Machinery Replacement Policy would be continued in 2011 and beyond, “with a view to utilizing current technology to improve efficiencies and better respond to increasing demand for our products.”
The company’s wastewater treatment plant, Reis said, has been completed at a cost of US$1 million, in accordance with the Company’s contractual arrangements with the Coca Cola Company, and in keeping with the Company’s commitment to the protection of the environment. The cost of this water treatment plant was borne on a 50/50 basis between Banks DIH and Coca Cola.
The Company plans some $3.2 billion in capital expenditure this year, and this will encompass the acquisition of new vehicles, replacement of the CO2 generating plant, installation of a new EBI (Electronic Bottle Inspector) and Checkmat System for the Beer Bottling plant.
During the year under review, the Company was awarded a Gold Medal for its Premium Beer at the 2010 Monde Selection Awards Ceremony held in Brussels, Belgium, and was also recognized by Diageo as a leader in volume sales for Guinness Stout in the Caribbean and Latin America at its Annual Awards Ceremony for 2010 in Amsterdam, Netherlands.
The Chairman said the fact that the Group “could be here at this time,” despite what appears to be, at times, insurmountable odds, speaks well of the talent and ability of its workforce.
He praised the General Workers Union for its contribution to the stable industrial relations climate that is in existence, and made reference to what seems to be ill will and rancour pervading industrial relations in other sections of the labour force. “I wish to thank the General Workers Union for all that it has done over the period under review to maintain that sense of balance and trust, which is so necessary to maintain a steady workforce,” Reis said.
He said that the economic environment was very challenging in 2010 even though global economies that were affected by the financial crisis began to show signs of recovery. But he said that while the fallout from the crisis on the global scene affected Guyana, the impact was not as heavy as first anticipated.
He noted that Guyana’s economy is expected to remain stable, as it is anticipated that the Government will continue to focus on the development and rehabilitation of the country’s infrastructure, and develop new housing settlements, thus stimulating growth in the economy.
Reis said that the company has embarked on the implementation of the ISO 22000:2005 standard across its operations. Noting that this standard is an international one that specifies the requirements for a food safety management system, Reis said in his Report: “The system is being developed and implemented for our dairy and soft drink operations. It is the Company’s vision to have all the Company’s operations fully ISO 22000:2005 compliant by 2012.”