Banks DIH taxed profit climbs to $6.7B in 2021

As businesses in Guyana continue to grapple with the negative impacts of the ongoing COVID-19 pandemic, Banks DIH Limited has shown consistent sustained growth after recording a whopping $6.777 billion after tax profit in its 2021 financial year.
This, according to the company’s Chairman Clifford Reis in his latest report for the period ending September 30, 2021, reflects an increase of $1.506 billion or 28.6 per cent over the $5.271 billion reported at the end of 2020 financial year. Consequently, profit before tax also went up to $9.439 billion, representing a growth of $2.110 billion or 28.8 per cent when compared to the previous year.
Additionally, Banks revenue generation in 2021 also grew by 17.7 per cent to $35.858 billion.
Reis credited this improvement in the company’s performance to the increase of physical sales by six per cent, increased dollar sales turnover by 17.7 per cent, management of operational expenses and better yields derived from raw material utilisation.
Meanwhile, it was reported that the Banks DIH Group’s profit before tax similarly improved from $8.899 billion to $11.078 billion, that is, an increase of $2.179 billion or 24.5 per cent.
The Group’s profit after tax attributable to shareholders of the parent company was $7.170 billion compared to $5.666 billion in 2020, an increase of $1.504 billion or 26.5 per cent. The Group’s net asset value per share grew from $50.89 to $58.87 by 15.7 per cent.
Further, the Board of Directors has recommended a dividend proposal of $1.70 per share unit resulting in an overall cost of $1.445 billion as compared with $1.147 billion in 2020, reflecting an increase of $298.0 million or 26 per cent.
The Chairman outlined in his reported that the 2021 financial year was plagued with challenges mainly resulting from the COVID-19 lockdown and restrictions which contributed to curtailed market conditions.
Despite this, however, he noted that the company continues to supply its customers with a range of quality beverages and food products and innovative strategies with the ultimate objective of remaining at the forefront of the highly competitive market.
“We were able to deliver products in a post-lockdown period by encouraging the creation of further customer connection by utilising our “Stay at Home message and Home Delivery Packs”. There were unavoidable increases in the cost of raw and packaging materials, spares and fuel as well as their availability due to the global supply chain issues caused by the COVID-19 pandemic. The company was able to mitigate some of the effects of this issue as a result of the investment in upgraded plant and machinery to enable the extraction of better yields from raw materials used.”
Reis went on to say that the company’s growth and sustainability efforts shown in the past year was as a result of the engagement and empowering of its dedicated employees.

Operation enhancement
He further reported that during 2021, the Company continued to invest in new technology and other assets to sustain growth through upgrading its production capabilities, to achieve better operational efficiencies.
Among the capital projects completed last year were the upgrade of the malts packaging line to enhance the efficiencies of the bottling process. Upgrades were also executed at the Soft Drinks Plant, the Rum and Winery operations, the Trisco Division and the Dairy Plant.
At the time of reporting, there were capital projects which were ongoing and are expected to be completed this year including the acquisition of lands at Vreed-en-Hoop and Bartica to facilitate the construction of two new Qik Serv Restaurants.
In addition, the Soft Drinks Plant Syrup Room and Blending Facility are being upgraded to facilitate the production of Minute Maid products under license from the Coca-Cola Company.
The Chairman further reported that Banks DIH Ltd continues to retain the top spot within the Emerging Market Segment of the Coca-Cola Latin Centre Business Unit, QSI Scoring System, achieving the maximum score of 300 points for Product Quality and Safety.
Moreover, during 2021, the brewery was placed third in the League of Excellence in the Americas out of 14 breweries and eighth worldwide out of 49 breweries. The brewery also placed second in the Large Breweries category with regards to the League of Excellence rankings.

Citizens Bank Guyana Inc
Meanwhile, Citizens Bank Guyana Inc, a 51 per cent owned subsidiary of the company, saw its revenue increase to $3.949 billion at the end of the 2021 financial year when compared with $3.749 billion generated in 2020, an increase of $200 million or 5.3 per cent.
The bank’s profit after tax was $1.056 billion, representing a growth of $73.3 million or 7.5 per cent over the previous year.
Reis reported too that net interest income for Citizens Bank was $2.866 billion and the earnings per share was $17.74, while the total asset base was $82.7 billion. The bank’s loan assets also increased from $31.7 billion to $33.8 billion, an increase of 6.6 per cent or $2.1 billion.
With regards to another fully-owned subsidiary of the company – Banks Automotive and Services Inc, revenue generation was listed at $57.5 million for 2021. A $2.1 million profit before tax was reported.
In 2022, the new multi-story vehicle parking facility and corporate offices and show room of Banks Automotive and Services Inc will be completed.
Nevertheless, going forward in this new financial year, the Banks DIH Chairman anticipates the continued disruption of the global supply chain, noting that its consequences will impact everyone and not just in Guyana. However, he is confident the company will once again overcome this.
“…of the many lessons learnt from this experience, one stands out and bears being repeated. We must remain positive and committed to the words of our Mission Statement that we are committed to building on our traditions of excellence by providing quality products and services. We will remain committed to achieving those goals which are supported by the platforms of our core competencies. My fellow shareholders, you will recall that the Board of Directors approved last financial year a modification to the company’s business model. Our most recent addition to the Group, Banks Automotive and Services Inc, will be the division to lead in the development of our future solar power and automotive initiatives, to add value for shareholders and investors,” Reis asserted. (G8)