…envisions optimistic economic outlook with ‘first oil’
…installation of multi-level parking facility, automotive and service centre among 2020 plans

FOOD and beverage giants, Banks DIH Limited, has recorded a 14.3% after-tax profit for the year 2019 and the shareholder company is optimistic in its economic outlook with the arrival of ‘first oil’.

According to the annual report of the company for the financial year ending September 2019, the percentage increase represents earnings by $611M when compared to 2018.
Chairman of the company, Clifford Reis, stated in his report that profit after tax attributable to shareholders of the parent entity was $4.897B; for 2018 the figure stood at $4.286B. He said that investments by Banks continued this year .

Reis listed the installation of increased storage capacity of potable water and equipment to accommodate increased production for the Ice Cream products and new flavours of Frostee Products among the factors for the improved results for 2019.

He said that the Trisco modernization project continued in 2019 with the installation of new packaging equipment to produce new and exciting packages for biscuits. The list include those for the Midwest range of biscuits and cookies as well as whole wheat crackers.
Reis said too the expansion of the security system via the installation of additional night vision cameras, as well as the installation of additional freezers, beverage coolers and water dispensers were among the progressive moves made by Banks in 2019.

Plans for 2020
He also noted the measured transition by Banks to the use of solar energy at the Qik Serv restaurants and that, he said, resulted in reduced energy charges.
Looking forward to 2020, Banks will focus its capital expenditure primarily on capital equipment for beer bottling plant. He said that would encompass the procurement and installation of an ‘uncaser’, a case packer, conveyors and a labeller.

He said that additional aspects of the capital expenditure will be expended on the purchase of trucks and lift trucks to further the selling and distribution activities.

Reis said that in 2020, the company will focus its capital expenditure on the construction of the new multi-level vehicle parking facility and “Banks Automotive and Services Inc” at Demerara Park , opposite Thirst Park.

Citizens Bank is a 51% subsidiary of Banks DIH and Reis said that that company recorded an after-tax profit of $955.3M, an increase of 58.6% when compared to the $602.3M in 2018.

Challenges
Reis said that for the greater part of 2019, the company faced some challenges and those included adjustment to rising fuel prices. He said that that bottleneck, among others, required “prudent management of our financial and human resources.”
In a direct reference to shareholder value, Reis said that despite the competitive environment in which it conducted business, the management of the company continued to focus on developing the innovating new business initiatives which can produce long-term growth.

Community relations
In his report, the chairman also noted that the company continued to honour its community relations and partnerships. He said that the relationship therein, continued to be mutually beneficial.

Banks, it was pointed out, was engaged in sponsoring brand ambassadors’ sports activities, religious events and bursary awards, among others. It also made commitments to the community as part of its business strategy.

Recently, oil production officially commenced here and Reis said, briefly, that an “Optimistic Economic Outlook” was envisioned with the arrival of first oil.

Reis said that the company continued to examine its core responsibilities to respond “to new opportunities that may be available which can be incorporated into our business models.”

Banks DIH will host its 64th annual general meeting on Saturday January 25, 2020.