– performance credited to the state of the art bottling line
Beverage giant, Demerara Distillers Limited (DDL) and its subsidiaries recorded an after tax profit of $1.5 billion and a growth of 4.2 per cent in 2011.
This was disclosed at the company’s Annual General Meeting last Friday where shareholders met at the company’s Diamond Complex on the East Bank of Demerara.
Last year, the group’s turnover increased to $14.6 billion or six percent over its 2010 performance.
“The group’s performance when viewed against the numerous challenges faced during 2011, both locally and internationally, was further affected by continued increases in prices for raw materials and other inputs,” the chairman’s report noted.
Despite the challenging year, Chairman Yesu Persaud said he is confident that in 2012, the group will perform stronger.
The group’s performance in the Caribbean was credible but not significant since these countries were still recovering from the global recession. Demerara Distillers (St Kitts-Nevis) Limited saw an improvement in after tax profits of $13 million in 2011, compared to $9.5 million in 2010. But National Rums of Jamaica Limited saw a decline in after tax profit in 2011, bringing in only $42.9 million.
Locally, however, the company’s growth was not interrupted by the economic crisis. Growth in the local economy was propelled by the mining, agriculture and manufacturing sectors. Local subsidiaries such as Demerara Shipping Company Limited saw growth in revenue of 15 per cent over 2010. Profit after tax was $106 million against $59 million in 2010.
International growth fell by 4.2 per cent in 2011 due largely in part to the European financial crisis. The Brietenstein Holdings BV subsidiary of DDL recorded an after tax profit of $142.2 million, which is six per cent less than 2010. However, Demerara Distillers (USA) Inc had a credible profit increase of $31.5 million.
Despite the difficult economic circumstances that prevail in the western economy, branded products have continued to grow internationally with a 10 per cent growth in revenue over 2010. “This is more than twice the rate of 4.66 per cent that major rum brands grew in 2011,” Persaud pointed out in his report.
The performance was credited to the state-of-the art bottling line, which was recently installed, giving the company the capacity to capitalise on growth opportunities which exist internationally.
Distribution Services Limited (DSL) revenue grew by 10 per cent. The growth was mainly attributed to the rise in the distribution of trading products. After tax profits was $258 million.
Persaud noted that a new state-of-the-art US$5M Multi Column Still, set to become operational this year will increase capacity, improve efficiency and will enable DDL to better compete in the international markets for bulk rum and spirits.
Additionally, the company’s journey along the green pathway will see the commissioning of its Bio-Methanisation Plant in June, which will further increase efficiency and output while decreasing DDL’s dependency in fossil fuel.
The Chairman reiterated that DDL is heading for further growth and development and shareholders will be proud to know their company is in the forefront of distilling and in the diversification programme.
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