– optimistic about second-half prospects

DEMERARA Distillers Limited (DDL) recorded $2 billion profit after tax for January to June 2023, despite the uncertain global economic situation.

Chairman of the DDL Group, Komal Samaroo, in his comments in the company’s interim report, said that profit after tax was $2 billion compared to $1.8 billion in the preceding year, reflecting an increase of 11.1 per cent.

Samaroo said that the profit before taxation for the period was $2.71 billion compared to $2.44 billion recorded in the previous year.

He noted that, in 2023, the War in Ukraine continues unabated, with its concomitant negative effects of price escalation on food and energy supplies.

“European economies continue to experience high inflation resulting in increasing interest rates, as Central Banks struggle to rein in such economies,” he said.

Samaroo noted that shipping costs have somewhat improved. However, input costs in their production processes remain high and supply chains are yet to regain normalcy. The worldwide effects of global warming are also worth noting.

“In recent months, record high temperatures in several parts of the world have caused major fires resulting in persons having to abandon their homes. In other parts of the world, unusually heavy rainfall has caused catastrophic floods – disrupting millions of lives. Clearly, the influence of global warming in the world must now be a central economic consideration,” he stated.

He related that those circumstances have had the effect of slowing the rate of growth of their sales in the European and North American markets, both of which are key markets for their branded and bulk alcohol products.

Export sales in the first half of this year achieved marginal increase compared to same period last year.

Overall, revenue for the year was $15.72 billion compared to $14.17 billion recorded in the previous year, an increase of approximately 11 per cent.

“This improvement was attributed to an increase in the Group’s domestic revenue by 15 per cent; while revenue from the international market increased by five per cent,” he said.

The Chairman said that as the Group continues to work to maximise all opportunities within its control, he remains hopeful that international markets will improve in the second half of the year.

“During the period, implementation of several major projects continued, while several others are at the planning stage. The impact of these projects will be beneficial on the Group’s results in future years,” he said.

He took the opportunity to recognise the ongoing commitment of staff and commended their hard work which contributed to the results, and also thanked the Board of Directors for their continued support, advice and guidance.