–records 31% profit increase
–declares 55¢ total dividend per share
BANKS DIH Limited last year recorded a profit of $4.036 billion before taxes, thereby improving its overall performance over 2010, when the company recorded a $3.081 billion profit.
Chairman and Managing Director, Clifford Reis, told the gathering yesterday that this profit amounted to an increase of $955.0 million, or 31 per cent on the previous year’s profit.
Over 1,000 BANKS DIH Limited shareholders attended the company’s 56th Annual General Meeting (AGM) at its Thirst Park, Georgetown location yesterday, to learn of the company’s robust performance in 2011.
According to Reis, the after-tax profit for the group attributable to shareholders showed a “significant increase” from $1.602 billion in 2010 to $2.298 billion in 2011, which is an increase of 43 percent over the 2010 figures.
Meanwhile, the company’s net profit increased from $1.362 billion in 2010, to $1.934 billion in 2011, reflecting an increase of $572.0 million, or 42 percent over the 2010 performance.
Profit before tax for the company was $2.802 billion, compared to $2.226 billion in the year 2010, an increase of $576.0 million (26 percent) over 2010 figures.
Reis said the company’s improved financial results for 2011 were  a result of an increase in physical sales, efficiencies derived from plant and  machinery upgrades, an improved pre-sell and distribution system, the installation of capital equipment, and the increase of Citizens Bank Guyana Inc’s net profit by 50 percent.
“Even as we faced challenges throughout 2011, we remained focused on our commitment to provide quality products and services, financial results and management performance,” the Chairman said.

CAPITAL EXPENDITURE
In 2011, the group’s expenditure on Capital works amounted to $3.210 billion. Capital expenditure in 2012 is $4.115 billion, of which $3.567 billion relates to Banks DIH.
During the year under review, the beverage company continued its modernisation programme to optimise its manufacturing processes to improve production and quality, and the distribution of its beverages and food products.
Reis said this is evidenced in the acquisition and installation of a low-pressure filler and filtration column for the Rum Factory, and a filling system for five and three-gallon sizes of water for the Water Plant
Added to this, an electronic bottle inspector, beer chiller cooling system and a checkmat system were installed in the Beer Bottling Plant, along with installation of a Co2 Plant and blow-moulding machinery.
The ice cream plant was also upgraded, and new vehicles were acquired for the transport fleet, along with additional lift trucks.
Additionally, the Chairman reminded of the commissioning of the Waste Water Treatment Plant, which satisfies contractual arrangements with the Coca Cola Company, and which attests to the company’s intention to be an environmentally friendly operator.

DIVIDENDS
The Board of Directors declared a first interim dividend of $0.15 per share, which was paid on May 20, 2011; second interim dividend of $0.15per share was paid on October 17, 2011, and now a final dividend of $0.25 per share, payable on January 23, 2012, has been recommended.
Reis noted that the total dividend for the year 2011 is $0.55 per share, with the overall cost being $550 million.

CITIZENS BANK GUYANA INC.
Turning to the company’s 51 percent-owned Citizens Bank, Guyana Inc., Reis said the subsidiary improved its revenue from $1.944 billion to $2.465 billion, an increase of $521 million or 27 percent. Profit after tax for Citizens Bank was $805 million in 2011, compared to $535 million in 2010, an increase of $270 million, or $50 percent.
According to the Chairman, the increased profitability was due to increased interests and other incomes, along with prudent financial management.
Citizens Bank’s total assets increased by $7.8 billion, from $27.2 billion in 2010, to $35 billion, or 29 percent, in 2011. Earnings per share for the Bank were $13.53, compared to $8.99 the year prior.
Reis also disclosed that the property known as Campsite, located at Camp Street and South Road, was sold to Citizens Bank for the expansion of the bank’s head office. This project is expected to be completed within the next two years.

CUSTOMER SERVICE/ DISTRIBUTION
The Chairman emphasised that the company   continues to focus on quality, new product innovation and packaging, as well as customer service and satisfaction in all aspects of its operations.
In this regard, he reported, during the year under review, the company introduced President Beer to complement the portfolio of its Banks Beer line.
The Chairman explained, “The new year will see the introduction of a new 12oz soft drink package, the launch of Malta Supreme, Vita Malt Plus, and the new family of XM Rums, including 7-, 10-, 12- and 15-year aged rums.”
In addition, the distribution network and pre-selling systems are also slated for enhancement, with the acquisition of new vehicles and new technologies to deal with orders, as well as delivery service countrywide.
Reis praised the General Workers Union for its contribution to the stable industrial relations climate that is in existence.
“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.

In closing, the financial statements for the year ended September 30, 2011 and the reports of the Directors and Auditors were adopted with no objection from any shareholder present.
In another highlight of the evening, 44 employees of the company were recognised for their long-standing service within two categories: those who served 20 years, and those who served 25 years at BANKS DIH.
The Buxton Primary, Leonora Primary, Dolphin Secondary and Golden Grove Secondary schools were also beneficiaries of monetary awards from the company, to be used for educational purposes.
In closing, the Company’s Chairman/ Managing Director expressed gratitude to all the employees and shareholders, and pointed out that the company’s continued success is  a result of collective efforts, which will undoubtedly be magnified in 2012.
He used the opportunity to impress upon the gathering the importance of loyalty and commitment in the wake of competition in the market.
“I want to thank our executive team and all employees who continue to dedicate their efforts towards the growth and development of the group,” he said.