Banks DIH to invest in excess of $1B in 2010

Jan 24, 2010 News

…pays $450M in dividends to shareholders

Chairman of the Board of Directors of Bank’s DIH Limited, Clifford Reis, last evening announced that the company will invest in excess of $1B dollars this year in the company to expand its operations, modernise its facilities and reduce production expenditures.

Chairman of the Board of Directors Clifford Reis delivers his report to shareholders.

This, the Chairman said, was part of the vision of the company to meet the demands meeting the company in light of the challenges it faces due globalisation resulting in greater competitiveness.

Of that expenditure mentioned by $200M or the equivalent of US$1M is a direct result of the effects of Climate Change.

Reis told the shareholders at the 54th Annual General Meeting that the Coco Cola Company has mandated the company to install a waste water treatment plant to ensure their activities would not compromise the environment in anyway.

“This is a non negotiable requirement that needs to be put in place by the end of 2010.”

This, he added, is a result of the mounting concerns of the sustainability of life on this planet

Banks DIH, according to Reis, will phase out the soft drinks glass line this year and invest in expanding the output of the PET line.

Whilst conceding the fact that it is not a bio degradable problem that has posed a problem he said that the bigger problem lies with the level of ignorance that pervades society giving as an example the fact that Guyana’s coast is below sea level and the flow of water has to be controlled with sluices yet they are always filled with plastic bottles that contribute to the risk of flooding.

The bottle washer in the Beer Bottling Plant will be replaced with technology which will give the Company a greater degree of flexibility to produce a wider variety of malt related products.

On the performance of the company in 2009, Reis pointed out that despite the fact that the company has faced several challenges as a result of the Global Financial Crisis it has reach a milestone performance and as such will be paying out some $450M in dividends to shareholders by month end.

“The shareholders have benefited from sowing seeds on fertile ground.”

A significant portion of this success has been attributed to the massive exports of the company to regional and international markets with Reis pointing out that the high rums have garnered numerous accolades and the company is seeking to tap in to the markets of even more European Countries.

Before tax, profit for the conglomerate reached $2.3 billion in 2009, Reis reports in the company’s annual report. This represents a 19.2 percent increase over 2008.

The profit after tax attributable to shareholders was $1.2 billion – an increase of $244 million over 2008.

For the first time in its history, the company’s net profit exceeded $1 billion, amounting to $1.1B, an achievement that Reis had challenged the company to make at the previous AGM.

In the financial year 2009, Reis said the company continued to derive very substantial savings from its independent power generation system.

Citizens Bank Guyana Inc. a 51 per cent-owned subsidiary of the Company achieved an after tax profit of S390.8 million compared to $ 437.7 million in 2008, a decrease of $46.9M or 10.7 per cent.

The profit for the year at Citizens Bank Guyana Inc. declined because some money was recognised as an impairment loss arising from investments made overseas.

Had this loss not arisen the profit for the Bank would have surpassed the level achieved in 2008, Reis stated.

Dividends received from Banks Holdings Ltd. Barbados for the year was $361 million and dividends paid to Banks Holdings Ltd. Barbados were $390 million based on investments made with each other.

The Board of Directors declared a first interim dividend of $O. 12 per share which was paid on May 18, 2009, second interim dividend of $0.12 per share on October 19, 2009 and has recommended a final dividend of $0.21 per share.

Some 37 longstanding employees were also rewarded for their years of service in two categories, namely the 20 and 25 years.

Four schools were also presented with cheques of $150,000 each as a result of a decision taken by the board of directors.