Banks DIH earns $7.5B in profits this year

…company rose above difficulties faced – Chairman

Local beverage giant, Banks DIH Limited, has recorded another year of excellent performance, earning a whopping $7.589 billion in profit after tax.
This represents an increase of $812 million or 12 per cent when compared to 2021, according to Banks DIH Chairman, Clifford Reis, in his annual report for the period ended September 30, 2022.

Banks DIH Chairman/Managing Director Clifford Reis

The Profit before tax for the company was $10.5 billion compared to $9.4 billion recorded in the previous year, a growth of $1 billion or 11.3 per cent.
Revenues generated by the beverage company during 2022 was increased to $39.653 billion, reflecting a rise of $3.795 or 10.6 per cent over the previous year.
Meanwhile, the overall performance of the Banks DIH Group also improved with a profit before tax of $13.398 billion, representing a growth of $2.320 billion or 20.9 per cent when compared to 2021.
The profit after tax for the Group is attributable to shareholders of the Parent Company also increased to $8.395 billion, that is, $1.225 billion or 17.1 per cent more than the previous year.
The Board of Directors has recommended a dividend proposal of $2.00 per share unit resulting in an overall cost of $1.7 billion, an increase of $255 million or $17.6 per cent over 2021.
According to Chairman Reis, the continued challenges of the global environment caused considerable instability and unpredictable impacts on businesses around the world including Banks DIH. He noted that even as the restrictions of the COVID-19 Pandemic unfolds, the effects of the geo-political crisis in Europe continues to create difficulties in the way the company is managed.
“The Financial Year which ended on 30 September 2022, had many ongoing challenges of supply chain issues, which resulted in the rising cost of raw materials, spares, production, distribution and the rising cost of living on workers’ income.”
“However, through our strategic planning and leadership skills, the Company was able to rise above these difficulties by managing our manufacturing processes to make consistent quality Beverages and Food Products, the engineering of efficient plant and equipment operations and the selling of our products “Better and Smarter” so as to manage growth. Employee engagement continues to be high and agile in a volatile market,” the Banks DIH Chairman stated.
Reis, who is also the company’s Managing Director, went onto state that during the 2022 financial year, the company continued to make capital investments in the production plant and machinery as well as equipment in order to sustain its long-term development and to enhance its manufacturing capacity and efficiency in operations.
He further noted that capital workers were completed with the installation of a centrifuge system in the Brewery to ensure higher yields and quality, and the construction of four 90-tonne silos to increase the malt storage capacity.
The Soft Drink Plant’s syrup room and production line were completed to facilitate bottling of Minute Maid drink products, while the Rum Plant was fitted with a new labeller, cleaning in place system, new storage tanks and 10 column carbon filter. The Water Bottling line also received a new five-gallon Water Plant and overhaul of blowmoulder.
Meanwhile, the Food Division was enhanced with a new Dough Divider and Cooling/Proving Racks for bread production and packaging equipment for biscuits. Expenditure was made on the utility services in the areas of steam, power generation and refrigeration.
In addition to the several enhancing projects across the company, there was the purchase of a storage bond at Drysdale Street in Georgetown and works continued on the Elevated Car Parking facility. The company’s transportation fleet was boosted with the purchase of new trucks and mini-vans. There was also the purchase of cookers and freezers to facilitate retail trade of the company’s ice-cream and beverage products in several small businesses.
According to the Managing Director, major capital works will be carried out in the new financial year on the upgrade of the Coca Cola and Icee Soft Drink Plants, Blowmoulder and Conveyors for the Rum and Wine Production Plants, a new oven for the Bakery, a new CO2 Plant, Power Distribution and new Land for future development.
Citizens Bank
With regards to the its 51% owned subsidiary – Citizens Bank Guyana Inc., a profit after tax of $1.8 billion, representing a growth of $744 million or $70.5 per cent over 2021. The Bank’s profit before tax for 2022 was $$3.001 billion, which is an increase of $1.219 billion or 68.4%.
Revenues to the tune of $4.847 billion was recorded, that is, $898 million or 22.7 per cent more than last year. The Net Interest Income was $3.577 billion.
The Bank’s earnings per share was $30.27 while the total asset base was $84.7 billion. Loan Assets were increased from $33.8 billion to $38.2 billion, reflecting a $4.4 billion or 13 per cent growth.
For Banks Automotive and Services Inc., a fully-owned subsidiary of the company, some $117 million in revenues were generated in the 2022 financial year, an increase of $59.5 million or 103.5 per cent. The profit before tax was $5.9 million, representing a growth of $3.2 million or 118.5 per cent.
In 2023, the new multi-story vehicle parking facility and corporate offices and showroom of Banks Automotive and Services Inc. is expected to be completed.
Further, the company’s Board of Directors declared a first interim dividend of $0.40 per share unit which was paid on May 27, 2022. A second interim dividend of $0.40 was also paid on October 24, 2022.
Now, the Board recommends a final dividend of $1.20 per share unit, making the overall dividend per share unit of $2.00 or an overall cost of $1.7 billion, an increase of $255 million or 17.6 per cent over the previous year.
“…Irrespective of the challenges which confronted us during the period under review, we were able to record growth in Shareholder value,” the chairman said.
From a net profit of $8.395 billion attributable to shareholders, a dividend payment of $1.530 billion was made; leaving the sum of $6.865 billion which was transferred to Retained Earnings. The market value for the company’s shares as at November 30, 2022 was $193 per share.
With the 2022 financial year just concluded, Chairman Reis said this year’s performance again demonstrated the Banks DIH ability to rise above the many challenges that were presented – something which they intend to emulate in 2023.
“As we look forward to the new financial year and further into the future, we will optimize our strong global brand portfolios and to pursue maintaining our position as a consumer-oriented company. This will be achieved by building on our solid foundations from the past by focusing on strengthening our core through advancing capabilities in marketing, innovation, revenue growth, management and executions, thereby adding value for our Shareholders and investors,” the Banks DIH Managing Director stated. (G8)