–despite threat of illegal trade

DEMERARA Tobacco Company Limited (DEMTOCO) has announced a strong operational performance for the second consecutive year, achieving 3.6 percent volume growth compared to the previous year.

The company’s revenue growth increased by 5.8 percent to $7.7 billion in 2022, mainly because of improvements in the portfolio mix and volume increases, resulting in a 2.5 percent increase in earnings per share.

The Managing Director of DEMTOCO, Vijay Singh, also highlighted that “share price at the close of the financial year stood proudly at G$3,000 representing a 50 percent increase which solidifies the confidence of our shareholders and commitment of management to deliver on expectations.”

Singh, in his report at the company’s 89th Annual General Meeting, highlighted the threat of illicit trade as the greatest risk to their business and the wider business community. The company believes that the rapid increase and far-reaching presence of illegal cigarettes will negatively impact their business, government revenues and further incentivise criminal activities in the communities.

He noted that if things continue as they are, the company stands to see this illegal trade grow by a further 10 percent by 2024, which will be at unmanageable levels in the market. The company has seen a similar situation play out in neighbouring Suriname in which the trade, left unchecked, ruined the revenue streams for the government and the legitimate industry.

In Guyana, DEMTOCO has been receiving support from the various law enforcement agencies and this is noteworthy. However, the Managing Director stated that much more has to be done and at an accelerated and urgent pace as the illicit traders are increasing their market share on a daily basis. He said the company remains committed to raising awareness of this issue through active engagement with regulators, government, and the private sector.

Despite the challenges posed by the illicit trade, the company’s premium brand Dunhill grew significantly by 11 percent, driven by continuous innovation that the brand offers which consumers embraced, and its Pall Mall brand experienced a seven percent growth.

DEMTOCO’s Managing Director urged shareholders to highlight this plight to ensure public awareness is at its peak. The company remains committed to ensuring sustainable growth through continuous improvements in their portfolio, distribution, and retention of the best talent in the market.