BANKS DIH Limited has had a hitherto unprecedented year of financial success in 2012, recording a pre-tax profit of $3.672 billion and an after-tax profit of $2.522 billion from its operations during that period.

The Banks DIH Group of Companies has also recorded a 22 percent financial improvement over its 2011 performance, in that the 2011 group’s pre-tax profit stood at $4.036 billion whilst the 2012 group’s pre-tax profit stands at $4.938 billion.
Chairman & Managing Director of the beverage giant, Mr. Clifford Barrington Reis, made this disclosure in his annual report, which will be presented to shareholders at this Saturday’s Annual General Meeting, wherein he also mentioned that the group’s after-tax profits attributable to shareholders showed a 21 percent increase, moving from $2.298 billion in 2011 to $2.776 billion last year.
However, he pointed out that included in that pre-tax profit is a one-off profit of $167 million arising from the parent company’s disposal of its Camp Street, Georgetown property to its banking subsidiary.
Chairman Reis attributed the company’s improved performance primarily to sustained public response and support for the company’s products, which resulted in higher physical sales and thus increased revenue.
Nevertheless, he noted that the company’s pre-selling and distribution systems and its marketing campaign, coupled with a better performing economy and greater disposable income, have also contributed to the company’s improved performance.
He indicated that the unit cost of products produced was reduced due to the continued acquisition of major plant and machinery during the year, as part of the company’s ongoing modernisation and expansion programme.
According to Reis, the capital works included the addition of a state-of-the-art Krones 400-bottle-per-minute soft drink plant; a shrink wrapper for the flavour-mixing line; upgrade and automation of the Brew House; acquisition of a water treatment plant, and equipment for the rum factory and bakery; acquisition of Co2 recovery system, and acquisition of additional trucks and forklifts to enhance the company’s distribution fleet.
He revealed that capital expenditure for this year would include acquisition of equipment for the Syrup Room, and sugar dissolving systems for the soft drink plant. In addition, there would be further expenditure on the brewery/cellars modernization programme; pasteurizer; bottle depalletiser and case palletiser for the beer plant; filler/rinser, labeller, and silos for the water plant; and automatic ice cream filler and aging tanks for the production of Premium ice cream, among other initiatives.
The Chairman said that Citizens Bank Guyana Inc., a 51 percent owned subsidiary of the company, increased its revenue by 17 percent, from $2.458 billion to $2.879 billion.
It also recorded an after-tax profit of $922 million, a 15 percent increase from last year’s $805 million.
“The improved profitability was due to increased net interest income and prudent management of the bank’s corporate objectives,” he stated.
He said the bank’s total assets increased from $35 billion to $38 billion, and loan assets increased by 14 percent from the previous year to $21.5 billion.
The bank’s deposits also increased from $30.6 billion to $32.2 billion, recording a five percent increase. Earnings per share were $15.5, as against $13.5 the previous year.
The chairman noted that the Board of Directors had declared a first interim dividend of $0.16 per share, which was paid on May 25, 2012; and a second interim dividend also of $0.16 per share, which was paid on October 15, 2012.
According to Reis, the board is now recommending a final dividend of $0.28 per share, with the overall cost being $600 million.
The Banks DIH Limited will hold its 57th Annual General Meeting (AGM) on Saturday, January 19, at Thirst Park.