– in first quarter this year

LOCAL beverage giant, the Demerara Distillers Limited (DDL), has recorded a 15 per cent increase in profit before tax and improvement in its turnover (sales) for the first half of 2018.

According to the company’s interim report, the profit for the first half was $1.5 billion, an increase of $204 million from the preceding year.

It was evident in the report that the company’s increased turnover might have led to the boost in profit.

“During this period [first half], the group continued to develop its international markets, while diversifying its operations on the domestic market,” said the company.

Turnover for the first half of 2018 was $10.2 billion, compared to $9.055 billion the previous years, representing an increase of $1.1 billion or 13 per cent.

In the domestic market, sales increased by almost nine per cent, while on the international market, the group’s turnover increased by more than 20 per cent.

Although there were increased returns, the company continued to improve its capacity by expending over $652 million in the acquisition of capital assets.
According to DDL, the assets were specially acquired for expansion and modernisation of the company’s operations.

The major project in progress at the end of the period was the construction of a modern warehouse for Distribution Services Limited at Diamond, East Bank Demerara. It is expected that this project will be completed in the last quarter of this year.

There are several other projects aimed at further diversifying and modernising the group’s operations at various stages of the planning process, the report said, noting that these investments are vital for the sustainability and expansion of future earnings of the company.

In addition to funding capital expenditure programmes, the group reduced its loan and overdraft balances by more than $1.4 billion during the first half of 2018, all from self-generated funds.

The company credited the results to the commitment and hard work of its employees who operate at all levels.