…plans to build modern car parking facility at Demerara Park

CHAIRMAN of the Board of Directors for Banks DIH Limited, Clifford Reis, in his 2018 Annual Report informed that Banks DIH Ltd. would be constructing, for its staff and customers, a multi-storey car parking facility which will include space for planned future development at the Demerara Park area.

The chairman explained to investors that the company continues to evaluate new business models which were compatible with existing business models and likely to create wealth and value for shareholders. He also noted that, in 2018, the company benefited from lower prices for several raw and packing materials, and, with prudent management, registered a profit, before tax, of$6.032 billion, an increase of $953.0M or 18.8 per cent.

The report for the period ending September, 30, 2018 noted that profit, after tax, increased from $3.584 billion to $4.085 billion, an increase of $501M or 14 per cent increase. Profit after tax attributable to shareholders of the parent company, the report stated, was $4.286 billion compared to $3.888 billion in 2017, an increase of $398M or 10 per cent.

The Group of Companies net assets value per share increased from $34.33 to $40.15. The Board of Directors recommended a dividend proposal of $1.10 per share unit, resulting in an overall cost of $934.8M. Further, the Chairman’s report noted that revenue generated by the company was $27.863 billion compared to $26.548 billion in 2017, an increase of $1.315 billion or five per cent.

“The improved results achieved were as a result of the increases in physical case sales of our Malt Products, XM Rums and Banko Wines; our Golden Harvest Bread and baked goods, and our Demico and Crème Select Ice-creams and Frostee products. Additionally, benefits were also accrued as a result of efficiencies achieved from raw material conversion and improved production throughout, arising from capital expenditure investment over recent years,” the chairman stated.

He continued: “The improved results were also as a result of lower prices negotiated for several raw and packaging materials, as well as from the prudent management of our financial resources.”

Further, Reis stated, with the introduction of an Environmental Levy of $10.00 per unit for all PET and returnable glass containers was gazetted during the last financial year and affected the selling prices and therefore the affordability of soft drinks and bottled water products.

He explained that the recapitalisation of the company’s capital base was continued during the period under review. “The inclusion of state-of the-art technology through the medium of plant, machinery and equipment on all of the Production Plants and in all of the service departments, enabled improved manufacturing and operational efficiencies. The New Vehicle Workshop and Truck Parking Zone were commissioned along with the new offices for the Workshop Administration Environmental and Safety Departments and the Building and Property Departments,” he stated.

Additionally, the chairman noted that the solar energy expansion programme was continued with the installation of a PV/Solar System at OMG and Main Street Qik Serv facilities. Those departments, he said, were now partially powered by solar generated electrical power. The chairman further stated that, “a new packaging line was installed on the Trisco Cookie and Cracker Plant and new production equipment was also installed in the Dairy and Novelty Ice Plant. Our distribution fleet was further enhanced through the acquisition of new trucks and forklifts. In the New Year, our Capital Expenditure thrust will be focused on increasing our potable water storage.”

Meanwhile, Citizens Bank Guyana Inc., a 51 per cent owned subsidiary of the company, earned $3.160 billion. The Profit before Tax was $1.009 billion and the Profit after Tax was $602.3 million. Net Interest Income was $2.24 billion. The report noted that the earnings per share were $10.12 while the total Assets Base was $50.5 billion. Loan Assets decreased from $28.2 billion to $25.5 billion in 2018 and Customer Deposits were $40.9 billion compared to $40.6 billion in 2017.