Jan 27, 2016 News
Banks DIH Linden Branch sold for the first time, over $1 billion worth in sales. This is according to Chairman Clifford Reis, during his feature address at the company’s shareholders meeting, to mark the company’s 60th anniversary.
Reis applauded the Branch Manager, Shaundelle Easton, for the sterling performance.
“When the company has signed to sell four percent, she sells 13 percent more. When we increased volume by three percent she increased by six percent.
“She has really performed, because not only has she sold 13 percent more- we did not raise prices, so she had to sell more volumes, and that is what she did,” Reis declared.
Easton who is at present the only female Branch Manager of Banks DIH, was presented with the Chairman’s trophy.
Reis told shareholders and other special invitees, that Banks had an after-tax profit of $2.569 billion compared to $2.265 billion in 2014, an increase of about $304 million or 13 percent. “This improvement was as a result of the increase in physical sales by three per cent, an increase in revenue by four per cent and a reduction in operational expenses by four per cent due to internal efficiency measures and favourable material prices.”
The Company’s operational profit before tax was $5.285 billion compared to $4.971 billion, an increase of $314.0 million or 6.3 percent; while its turnover net of taxes was $24.875 billion compared to $23.695 billion in 2014, an increase of $1,180 billion or five per cent.
Beer sales was $2.2 billion, an increase of $168 million which Reis said was due to the excellent performance of GT beer.
“This brand has allowed us to significantly increase our share on the beer market. At the same time Banks beer continues to be our flagship product and we’ve noted an increase in the demand towards the latter half of the year.
“We’ve also successfully relaunched our Premium beer and indications are that it will be well accepted on the market.”
“Guinness continues to be a strong brand, recording a seven percent increase in sales. It is worthy to mention that we’ve achieved a share of over ninety six percent on the local stout market.”
The Company’s focus, Reis said, continued to be the development and strengthening of shareholder value in 2015 through capital improvements to the production plants and the delivery and distribution network.
As regards the sale of the company’s shares in Banks Holdings Barbados to SLU Beverages, a subsidiary of Brazil’s Ambev, Reis said that it was a wise decision.
He said, “It was an investment, and the company made a profit, half of which goes to the shareholders.”
Banks DIH’s shares in Banks Holdings Barbados were sold on December 2, last, for $4.3 billion on the Barbados Stock Exchange- more than they were originally bought for, Reis said, adding that the company’s Board of Directors agreed that $600 million or 50 percent of the profit earned from the sale of those shares to SLU Beverages, should be paid to shareholders.
Reis pointed out that Ambev owns trademarks for 20 beers and malt beverages, with operations spreading across the Americas, Europe and the Pacific. The brands of beer include Budweiser, Corona, Bud Light and Skol.
As these products are well known, Reis said that the relationship between the two beverage giants could lead to better marketing of each other’s products.
“The commercial benefits that will accrue to Banks DIH Ltd. will include but are not limited to a greater market export and market share of the Banks brand outside of Guyana,” he said.
Bottling of one of Ambev’s beers in Guyana is a distinct possibly, according to Reis. “There are opportunities for a bottling agreement for one of those Ambev brands…We have a new brewery so it is a good opportunity. Maybe we can have an agreement to bottle one of those brands.”
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