DESPITE talks from sections of the population about the slowing down of the economy and a decline in business, the Demerara Distillers Limited (DDL) has recorded $1.2 billion in profit after tax for the period January to June.

Chairman of the DDL Group, Komal Samaroo, in his comments in the company’s interim report, said profit after tax was $1.2 billion compared to $1.1 billion in the preceding year.
Samaroo said gross profit in the period increased by 5.7 per cent, while profit before taxation increased by 7.2 per cent and profit after tax increased by 6.2 per cent. “Overall turnover increased marginally by 3.3 per cent to almost $10.6 billion in the period, compared with just over $10.2 billion in the corresponding period in the previous year,” he said.

The company expended $1 billion on programmes related to the modernisation and diversification of the DDL Group. The company’s new central distribution centre of Distribution Services Ltd (DSL) was completed in March 2019 and the distribution operation was relocated from the Ruimveldt location at the beginning of April 2019.

“Construction of a modern blending plant for the branded spirits division was significantly advanced in the period and will be completed before the end of the third quarter of this year. This dismantling of the old blending plant will release much needed space for the expansion of the production and warehousing facilities of the beverage division,” said Samaroo, adding that the project is in the planning phase and will commence next year.
Meanwhile, during the period under review, the upgrades to the wharf and container yard of Demerara Shipping Co. Ltd continued as part of a three-year project, which would ultimately result in the complete rehabilitation of the entire facility. The rehabilitation and restructuring of the sales offices were completed in August of this year.

It is expected that production in the offshore oil and gas sector would commence in the first quarter of next year.

The group’s investments in these various projects, along with several others that are, in the planning stage, will place it in an excellent position to take full advantage of new opportunities that the projected growth in the national economy will present over the next decade. “In the meantime, we continue to invest in the continued training and advancement of skills and knowledge of our employees. The continued improvement in the group’s performance is a direct testimony of the commitment and hard work of such employees,” said Samaroo. The group’s profit before tax for 2018 stood at $4.362B compared to $3.551B in the previous year, representing an $810M or 23 per cent increase.