–new Qik Serv restaurants to be constructed in Regions Three, Seven

STRATEGIC planning and prudent decisions by the Banks DIH Group has resulted in the company overcoming challenges created by the COVID-19 pandemic to record a profit after tax of $6.7 billion in 2021.

According to the company’s annual report, the profits recorded in 2021 reflect an increase of $1.5 billion or 28.6 per cent when compared with its profit of $5.2 billion in 2020.
Referencing this performance, Chairman/Managing Director of the Banks DIH Group, Clifford Reis, in his message to shareholders, said: “Banks DIH Group continues to excel by showing consistent sustained growth over the past year ended 30 September, 2021.”

Increased profits were attributed to an increase in physical sales by six per cent, the increase in dollar sales turnover by 17.7 per cent, management of operational expenses and better yields derived from raw material utilisation.

Overall, revenue generated by the company was $35.8 billion compared to $30.4 billion in 2020, an increase of $5.3 billion or 17.7 per cent.

As a result of the company’s positive performance, the company’s Board of Directors recommended a dividend proposal of $1.70 per share unit, resulting in an overall cost of $1.4 billion as compared to $1.1 billion in 2020.

“My fellow shareholders, the financial year which ended on 30 September 2021 again presented challenges mainly resulting from the COVID-19 lockdown and restrictions, which contributed to curtailed market conditions.

“However, the company continues to supply its customers with a range of quality beverages and food products and innovative strategies, with the ultimate objective of remaining at the forefront of the highly competitive market,” Reis said in his report.

By utilising its “stay at home message” and “home delivery packs,” the company was able to deliver products in the post-lockdown period.
Further challenges related to COVID-19 were unavoidable increases in the cost of raw and packaging materials, spares and fuel as well as the availability of those items due to the global supply chain issues.

“The company was able to mitigate some of the effects of this issue through investments in upgraded plant and machinery to enable the extraction of better yields from raw materials used,” Reis said.
To further enhance its operations, Banks DIH, during the period under review, continued to invest in new technology and other assets.

Capital projects completed within the year include the upgrade of the malts packaging line to enhance the efficiencies of the bottling process. The Soft Drinks Plant also benefitted from upgrades to the blowmoulder, filler, labeller, shrink wrapper and pallet wrapper, and the rum and winery operations received a new labeller, CIP system and new fermenters.

In the Trisco division, the bakery was upgraded with a new intermediate proofer, conveyors and moulders, while a new sugar pulveriser mill was installed on the biscuit plant in order to improve the quality of cookie, cake and pastry products. A new crate washer was also installed in the dairy plant.

Speaking about additional enhancement efforts, Reis said: “Our route-to-market channel was strengthened with the acquisition of new trucks and forklifts. Our customer experience was also enhanced as we continue to provide them with merchandising coolers, freezers and water dispensers.”

Other projects completed included the new record storage facilities, and a new motorised truck washing facility.
“Our information and communication technology capacity was further enhanced with the addition of new hardware and software as well as the replacement of several old items of equipment,” Reis said.

MORE PROJECTS
At the time of reporting, there were capital projects which were ongoing and are expected to be completed within the new financial year. Among those projects is the acquisition of lands at Vreed-en-Hoop and Bartica to facilitate the construction of two new Qik Serv restaurants.

Additionally, the Soft Drinks Plant’s syrup room and blending facility are being upgraded to facilitate the production of Minute Maid products under licence from the Coca-Cola Company. Further, a new malt and rice mill, as well as a new centrifuge system will be added to the brewery.

“My fellow shareholders, as we look to the future, perhaps it is apposite to ask the question in paraphrase of ourselves and our company as we look to the new year ahead. “Where are we going?” Reis said.
The global reality of a disrupted supply chain and its consequences will impact everyone regardless of where they may be.

“My Fellow Shareholders, of the many lessons learnt from this experience, one stands out and bears being repeated. We must remain positive and committed to the words of our mission statement that we are committed to building on our traditions of excellence by providing quality products and services,” the Chairman related, adding: “We will remain committed to achieving those goals which are supported by the platforms of our core competencies.”

Moving forward, according to Reis, the company’s most recent addition, Banks Automotive and Services Inc., will be the division to lead in the development of Banks’ solar power and automotive initiatives, to add value for stakeholders and investors.