EVEN as various sectors continue to recover from the effects of the COVID-19 pandemic, the Banks DIH group has defied the odds to rake in a profit of $3.6 billion for the first half of the financial year.

According to the Chairman of the Banks DIH, Clifford Reis, in a statement published in the company’s interim financial report, the group’s unaudited profit before taxation for the first half of the year was $3.646 billion compared to $3.262 billion in 2021; this represents an increase of $384 million or 11.8 per cent.

The report noted that the company’s unaudited profit after taxation was $2.5 billion compared to $2.275 billion in 2021, an increase of $258 million or 11.3 per cent.
Reis said the group’s third-party revenue for the six-month period was $21.8 billion compared to $19.7 billion for the corresponding period in 2021, an increase of $2.1 billion or 10.7 per cent.

In a breakdown of how the revenue was generated by the group’s subsidiaries, Reis said Banks Automotive and Services Inc., a 100 per cent owned subsidiary of the company, generated revenue of $25.8 million compared to $19.5 million in 2021, an increase of $6.3 million or 32 per cent.

The subsidiary’s profit after taxation was $1.6 million compared to $1.1 million in 2021, an increase of $0.5 million or 45 per cent.
The unaudited operating profit before taxation for Banks DIH Limited was $2.7 billion compared to $2.4 billion in 2019, an increase of $340 million or 13.9 per cent, while the unaudited profit after taxation was $1.9 billion compared to $1.6 billion in 2019, an increase of $305 million or 18.2 per cent.

Citizens Bank Guyana Inc., a 51 per cent owned subsidiary of the company, recorded an unaudited profit after taxation of $722.2 million compared to $478.4 million achieved in 2021, reflecting an increase of $243.8 million or 51 per cent.

During the period under review, the company’s capital expenditure was focused on the acquisition of new trucks, display coolers, freezers, dispensers, and draught beer cylinders to enhance the company’s marketing and distribution infrastructure.

There was also the replacement of equipment across the company which included power generation/supply, refrigeration, security cameras, and computer equipment.

The report noted that in the second half of the year, work will continue on the syrup room upgrade, the new water bottling plant, the new Malt and Rice Mill, as well as a new Centrifuge System for the Brewery.

As a result of the company’s performance, the directors have approved an interim dividend of $0.40 per share unit to all shareholders whose names appear on the share register as at 17 May 2022. The cost of this dividend payment will be $340 million.

Despite the successes recorded in the past six months, the group is anticipating new challenges, which may arise as a result of the Russia-Ukraine war.

“My fellow shareholders, the mitigation of the effects of the Coronavirus Pandemic (COVID-19) has assisted the company to cope with the many challenges that arose therefrom. However, the supply chain will continue to be disrupted as a result of the geopolitical crisis in Europe.

“Prices of key raw materials and supplies will continue to rise which will affect our profitability. We are confident that we will rise above the challenges ahead and will report improved results, in the second half of financial year 2022,” Reis said.