Latest update March 19th, 2024 12:59 AM
Jan 19, 2018 News
…Guyana fourth in Guinness production
The year 2017 has not been a bad year for rum according to the Banks DIH Limited Group.
The group raked in $30B in revenues, more than $1.2B than the previous financial year that had ended in September 2016.
The group in its Chairman’s Report of the 2017 Annual Report is crediting the good showing from better sales of its beers and other products and heavy investments in its plants and machinery at the Thirst Park site.
According to Chairman, Clifford Reis, third party revenue was $30B compared to $28.76B in 2016, an increase of $1.243 billion or 4%. The trading profit from operations for the group was $6.19B compared to the $5.066B recorded in the previous year, an increase of $1.130B or 22.3%.
Banks DIH is set to hold its 62nd Annual General Meeting next week Saturday at its Thirst Park facilities.
According to Reis, in the previous financial year ended September 2016, the group benefitted from the one-off gain of $1.409B after it disposed of its investment securities held in Banks Holdings Ltd and Desnoes and Geddes (Jamaica) Ltd and the dissolution of BCL (Barbados) Ltd.
“Excluding the impact of that one-off gain in 2016, the Company’s Profit after Tax increased from $2.948 billion to $3.584 billion, this being $636.0 million or 21.6%,” the Chairman reported.
It was disclosed that the improved results were made possible through the increases in sales of Banks’ malt products, aerated and liquor beverages and food products.
“Additionally, further benefits accrued from improved production efficiencies resulting from our capital investments in plant and machinery.”
Reis noted that Banks also benefitted from the reduction in prices paid for several key raw and packaging materials which included sugar and preforms.
“Prudent management of our asset base and financial resources also contributed to the overall results. My fellow shareholders, while the global economy experienced some shocks as a result of the recent general elections in the United States of America, there were marginal improvements resulting from the increases in commodity and oil prices.”
Banks managed to weather the effects of an artificial increase in foreign exchange rates which affected the acquisition costs for raw and packaging materials, plant and machinery spares and capital equipment, and the availability of foreign exchange for the payment of goods and services.
However, there were challenges.
“The introduction of an Environmental Levy of $10 per container on all non-returnable glass and PET containers, drew an immediate response as consumers reacted to a new pricing reality. As a consequence, the predictable reduced consumer spending along with the overarching effects of reduced export earnings in the agricultural sector affected overall retail sales.”
Last year, Banks was busy with its re-capitalisation of the production, distribution, power generation facilities and central services.
Reis credited the improvements of the distribution warehouse, which was extended by 15,900 square feet of new storage space, as positively impacting.
The company also acquired a 1.7 MW generating set to boost its capacity.
Last year, also, Banks outfitted its Sales and Marketing Team with handheld devices for the Pre-selling Department.
“This innovation has resulted in cost-savings, better management of products and services and a more satisfied customer base in terms of the time saved between the placement and the filling of orders.”
The group is now targeting further investments in solar energy, an initiative which was tested and introduced in 2017 at our Main Street Qik Serv Restaurant.
At Citizens Bank Guyana Inc, a 51 percent owned subsidiary of the company, revenues were $3.553B compared to $3.266B, an increase of $287M or 8.8 %.
“Profit before Tax was $1.222B compared to $759M in 2016 while Profit after Tax was $727M compared to $479M in 2016, an increase of $248M or 51.8%.”
From the net profit of $3.888B, there is a dividend payment of $802M.
Last year, in addition to international recertification, Reis disclosed that Banks was successful at the Finance, Environment and Safety audits that were conducted by the Coca Cola administration.
“The company performed exceptionally in the Guinness League of Excellence which resulted in the company earning the Second position in the Americas and fourth worldwide for the manufacture of Guinness Stout as at 30 September, 2017.”
Listen to the man that is throwing Guyanese bright future away
Mar 19, 2024
Kaieteur Sports – The Dennis DeoRoop-trained horse, Stolen Money, dominated the field to claim victory in the feature event at the Kennard’s Memorial Turf Club, Bush Lot East Berbice on...Kaieteur News – The government has embarked on an ambitious infrastructure development spree. It has initiated major... more
By Sir Ronald Sanders Waterfalls Magazine – In 2024, a series of general elections in Latin American countries, including... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]