Banks DIH profit at $3.5B
(center) Chairman and Managing Director, Clifford Reis flanked by the board of directors.
(center) Chairman and Managing Director, Clifford Reis flanked by the board of directors.

…Chairman credits growth in increased sales, reduction in prices for key raw materials

AS Banks DIH prepares for its 62st Annual General Meeting (AGM) on January 27, 2018, the beverage giant has announced that the company’s profit after tax increased from $2.9 billion in 2016 to $3.5 billion 2017- being $636M or 21.6 percent.

According to the Chairman and Managing Director, Clifford Reis in his report he stated that in the prior year the company benefitted from the one-off gain of $1.4 billion accrued as a result of the disposal of the Investment Securities held in Banks Holdings Ltd and Desnoes and Geddes (Jamaica) Ltd and the dissolution of BCL (Barbados) Ltd.

The group’s net assets value per share has increased from $31.72 to $33.33 and the company has increased its dividend proposal to shareholders to $1.04 per share unit resulting in an overall cost of $884M. “The improved results were made possible as a result of the increase in sales of our malt products, aerated and liquor beverages and food products,” the Chairman noted in the 2017 annual report.

He said the company also benefitted from the reduction in prices paid for several key raw and packaging materials which included sugar and pre-forms. “Prudent management of our asset base and financial resources also contributed to the overall results…while the global economy experienced some shock as a result of the recent general elections in the US there were marginal improvements resulting from the increase in commodity and oil prices,” the Chairman said.

Artificial increase in foreign exchange
Reis stated that the company weathered the effects of an artificial increase in foreign exchange rates which affected the acquisition costs for raw and packaging materials, plant and machinery spares and capital equipment; in addition to foreign exchange and payment of goods and services.

Adding that the recapitalisation of the company’s production, distribution and power generation facilities continued in 2017, Reis said the distribution warehouse was extended with an additional 15,900 square feet of new storage space. “A new malt intake system was installed in the brewery and the beer bottling benefitted from the installation of a crate washer and a new cleaver brook boiler. The modernisation of the Trisco Cookies, crackers and snack lines was continued with the acquisition of new packaging equipment and machinery,” he said.

Citizens Bank
Meanwhile, the Chairman in the 2017 annual report noted that the revenue of Citizens Bank was $3.5 billion compared to $3.2 billion, an increase of $287M or 8.8 per cent. Profit after tax was $727M. Underscoring that in creating wealth for shareholders through the creation of synergies, the implementation of finance and marketing initiatives and continued emphasis on cost reduction strategies, Reis said from a net profit of $3.8 billion, a dividend payment of $802M was made leaving $3 billion for transfer to retain earnings.

He noted that the company performed well in 2017 and the uncertain global and local economic environments together with the effects of changing global weather patterns are factors which will adversely affect the company. “We continue to examine areas in which we can diversify our business portfolio,” the Chairman said.

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