Banks DIH records $1.788B after-tax profit for 2016

As Banks DIH prepares for its 61st Annual General Meeting (AGM) on January 28, 2017, the company has announced that it has recorded a whopping .788 billion after-tax profit for the year 2016.

The report, presented by Chairman and Managing Director Clifford Reis, showed that the profit after tax for the company was some $4.357 billion, compared to $2.569 billion in 2015, an increase of $1.788 billion.

Included in this profit is a gain of $1.409 billion arising from the sale of its holding of ordinary shares in Banks Holdings Limited and Desnoes & Geddes (Jamaica) Ltd, and the dissolution of BCL (Barbados) Ltd, which resulted in a surplus of $29.2 million over the cost of the investment.

According to Reis, the profit after tax from the company’s operating activities was some $2.948 billion, compared to $2.569 billion achieved in 2015, an increase of $379.0 million or 14.7 per cent.

“These improved results were attributed to increases in revenues and physical unit sales, improvement in cost reduction and prudent management of our capital, human and financial resources,” Reis said in his four-page report.

During the year, he said the company operated in a global environment where sluggish economic growth in most advanced economies continued, owing in part to the decline in commodity prices and incremental increases in oil prices. The reduction in export earnings for sugar, bauxite, rice and timber, he said, has negatively affected the domestic environment. This, in combination with reduced public spending, caused consumer uncertainty, which led to reduced demand.

“We rose above these challenges and achieved growth through investment in our quality brands and strategically placing our resources against the biggest growth opportunities. Necessary steps were taken to strengthen our company’s operating capabilities to drive sustainable growth and value creation for our shareholders, customers and employees,” Reis reported.

Meanwhile, the group’s turnover net of taxes was $25.516 billion compared to $24.875 billion in 2015, an increase of $641.0 million or 2.6 per cent. The group’s operational profit before tax was $6.528 billion compared to $5.285 billion, an increase of $1.243 billion or 23.5 per cent. The group’s profit after tax attributable to shareholders was $4.468 billion compared to $2.945 billion, an increase of $1.523 billion or 51.7 per cent.

The group’s net asset value per share has increased from $28.6 to $31.7 or by 10.8 per cent, and the company has increased its dividend proposal to shareholders to $0.88 per share unit resulting in an overall cost of $880 million. This is in addition to the special dividend of $0.60 per share unit that was paid in February 2016. Total dividends proposed for the current year equate to $1.480 billion.

In recent years, the company made capital expenditure decisions regarding investments in fixed assets as part of its journey of consolidation. These investments benefited the company’s operations by increasing output capabilities, reducing costs and providing quality products to satisfy consumers’ taste and new demand. During the year, a new Krones state-of-the-art filler, along with associated conveyors, a bottle inspection facility and CIP Systems were installed in the Beer Plant.

An on-line blow moulding machine was commissioned in the Water Bottling Plant and the upgrade of the electrical power distribution system continued. The upgrading of Demico Restaurant and Bar facilities and the Fleet Replacement Policy with the acquisition of additional trucks and forklifts continued during the year. Our ICT Department’s capacity and capability were improved by way of system upgrades.

The company has also shared the reduction of its revenues from Citizens Bank Guyana Inc, a 51 per cent owned subsidiary, which was $3.266 billion compared to $3.708 billion, a reduction of $442.0 million. Profit after tax was $479.0 million compared to $907.0 million in 2015. The total assets increased from $43.1 billion by $7.1 billion or 16.5 per cent to $50.2 billion. Loan assets decreased from $30.7 billion to $29.2 billion and customers’ deposits increased from $34.9 billion to $42.1 billion. Earnings per share is $8.05 and Net Interest Income decreased from $2.65 billion in 2015 to $2.11 billion. Meanwhile, the company also announced that its 61st AGM will be held at Thirst Park on Saturday. At the AGM, shareholders will receive the financial statements for the year ended September 30, 2016 and the reports of the directors and auditors among other activities.