Banks DIH taxed profits grew by $501M in 2018

Local beverage giant Banks DIH Limited has recorded a whopping $4.085 billion profit after tax according to its 2018 annual report, compared to $3.584 billion in the previous year.
This represents an increase of $501 million or 14 per cent, according to Banks DIH Chairman Clifford Reis in his report.
The profit before tax, on the other hand, also grew by 18.8 per cent with $6.032 billion recorded in 2018 against $5.079 billion the previous year, representing an increase of $953 million.
Revenues generated by the company were recorded at $27.863 billion compared to $26.548 billion in 2017, a five per cent hike.
Meanwhile, the Banks DIH Limited Group’s third-party revenue was $30.923 billion from $30.006 billion in 2017 while trading profit from operations for the Group was $6.837 billion last year against $6.196 billion the previous year.
Profit after tax attributable to shareholders of the parent company was $4.2 billion while the Group’s Net Asset Value per share increased from $34.33 to $$40.15.
Furthermore, the Board of Directors recommended a dividend proposal of $1.10 per share unit, resulting in an overall cost of $934.8 million.
According to Reis, who is also the company’s Managing Director, these improved outcomes were as a result of the increase in physical case sales of its Malt Products, XM Rum and Banko Wines as well as the company’s Golden Harvest Bread and baked goods, and Demico and Crème Select Ice-creams and Frostee products.
Additionally, he said benefits were also accrued as a result of efficiencies achieved from raw material conversion and improved production throughout, arising from capital expenditure investment over recent years.
“The improved results were also as a result of lower prices negotiated for several raw and packaging materials as well as from the prudent management of our financial resources,” he stated.
The Chairman noted, however, that the environmental tax affected the selling prices and, therefore, the affordability of the company’s soft drinks and bottled water products.
Reis further outlined that the recapitalisation of the company’s capital base was continued during 2018. However, he pointed out that going forward this year, Banks DIH’s capital expenditure thrust will be focused on increasing a number of continuing and new projects including the construction of a new multi-storey car parking facility at the Demerara Park Area, which will include space for planned future development.
With regard to Citizens Bank Guyana Inc, profit after tax for the year 2018 was recorded at $602.3 million, while profit before tax was $1.009 billion. Revenues of the Bank stood at $3.160 billion, while Net Interest Income was $2.24 billion and earnings per share was $10.12.
Additionally, Citizens Bank’s assets base was $50.5 billion, while loan assets decreased from $28.2 billion to $25.5 billion in 2018, and Customer Deposits were $40.9 billion compared to $40.6 billion in 2017.
In terms of quality management and environmental responsibility, Reis noted that the company continued to be guided by principles of sustainability and accountability to reduce or eliminate any impact of its operations on the environment and communities.
Against this backdrop, the Chairman posited that Banks DIH would continue with its various programmes that celebrate the country’s diversity.
“We continue to evaluate our traditional business model to create wealth for shareholders through the creation of new synergies, implementation of finance and marketing initiatives and, continuing emphasis on cost reduction strategies… These new business models will bring into our existing business portfolio, a new generation of products and services which will foster job creation and added value,” Reis stated.
Despite a commendable performance last year, the Chairman said, however, they would remain mindful of the innate challenges of operating a Group which could affect its continued development.
Nevertheless, he assured stakeholders of the company’s commitment to deliver better results through initiatives such as innovative technology, leadership in the solar energy sector, the pursuit of market extensions internationally and impending diversification programmes.