BEVERAGE giant Banks DIH Limited last year raked in after-tax profit of $2.569 billion, compared to $2.265 billion raked in in 2014.Chairman of the Banks DIH Group, Clifford Reis, in presenting the Chairman’s Report on the company’s performance for the period ended September 30, 2015, said the $2.569 billion profit represents an increase of $304.0 million, or 13%.

“This improvement was as a result of the increase in physical sales by 3%, an increase in revenue by 4%, and a reduction in operational expenses by 4% due to internal efficiency measures and favourable material prices,” Reis explained in his report, to be formally presented at the company’s annual general meeting.

The group’s turnover net of taxes was $24.875 billion, compared to $23.695 billion in 2014 -– an increase of $1.180 billion, or 5%. Its operational profit before tax was recorded at $5.285 billion, compared to $4.971 billion in 2014 – an increase of $314.0 million, or 6.3%.

“The group’s profit after-tax attributable to shareholders was $2.945 billion, compared to $2.660 billion, an increase of $285.0 million, or 10.7%. The group’s net asset value per share has increased from $25.9 by 10% to $28.6, and the group has increased its dividend proposal to shareholders to $0.69 per share unit, resulting in an overall cost of $690.0 million,” the Chairman further pointed out.

Reis said: “This remarkable achievement was made at a time when the local commercial zone had experienced a drop in sales during and after the 2015 Elections.”

“Closer to home, consumer confidence was eroded in the run-up to the last elections cycle and the post-elections events which resulted in a contraction of consumer spending. In spite of these challenges, we continue to adapt to the realities of operating in a rapidly changing business and social environment.

“We are able to utilize the collective knowledge and experience base which has been assembled over the years of our existence,” Reis explained.

Development agenda
Despite those challenges, the Chairman said Banks DIH has kept its ‘eyes’ fixed on its developmental agenda, which included training in all areas to proactively respond to the rapidly evolving technological and emerging market demands; and product packaging development to satisfy the requirements of a younger and more discerning customer base.

Capital Expenditure
In order to achieve its ambitious growth rates, Banks DIH, over the years, has been investing in modernising its production and distribution capabilities, especially in the Brewery, Soft Drinks, Rum, Wine and Ice-cream production facilities. Reis said these were complemented with the support services upgrade of the Power Generator, CO2 Production, Steam Generation and Water Supply Systems.

During the year, he said, capital works continued with acquisition and installation of a new biscuit oven, in addition to other equipment which were installed across the company.

“Ongoing installation continues on an on-line blow mould machine for the Water Production Facilities and new filler for the Beer Plant,” Reis said, noting that the mega-company continues to benefit from these investments in the area of consistently higher yields and the quality of the products produced.

“There was also less downtime, and longer and longer uninterrupted production runs, and an overall reduction in operating expenses as a result of the capital expenditure and expansion programme,” he added.

Turning his attention to Citizen’s Bank Guyana Inc., the Chairman said the new Citizens Bank at New Amsterdam is ready to satisfy the banking needs of those residing in the Berbice region.

“This full-service branch stands as testimony to our ongoing objective to provide state-of-the-art facilities and higher levels of service to our customers and friends,” Reis said.

Citizens Bank Guyana –- a 51% owned subsidiary of the company — increased its revenue from $3.217 billion to $3.708 billion by $491.0 million, or 15%. Profit after tax was recorded at $907.0 million, compared to $989.1 million in 2014.

It was reported that total assets of the company increased from $42.1 billion to 43.1 billion – representing a $1.0 billion increase. Loan Assets increased by 6%, from 28.9 billion to $30.7 billion. Customers’ Deposits increased from $33.2 billion by $1.7 billion or 5% to 34.9 billion. Additionally, earnings per share are $15.24 and net interest income increased from $2.37 billion to $2.65 billion in 2014.

Looking ahead, Reis said: “We anticipate that the global macroeconomic environment will continue to impact the landscape of all businesses…Investments in the expansion and modernisation of our production facilities, strengthening our geographic reach to all areas across the country, and enhancing export trade will significantly enhance our vision of success.”