Demerara Distillers Limited (DDL) and its subsidiaries have recorded in excess of 0 million for the first half of the year, representing a 12 per cent increase over the same period last year but the company is also becoming increasingly wary of the international developments, specifically Brexit and utterances by US Presidential Candidate Donald Trump.
DDL Chairman Komal Samaroo
The company has released its unaudited financial statements and according to Chairman Komal Samaroo, while it is too early to fully evaluate the impact of Brexit on the rum industry in Europe, it is carefully being assessed.
Samaroo said Brexit, coupled with the apparent rise of nationalistic sentiments in the upcoming US Presidential Elections and also in other western countries could arguably signal a reverse of the globalisation process which saw the growth of new markets around the world.
According to Samaroo, “such developments could present new challenges for countries like ours with small domestic markets.”
He has since suggested diversification. According to the company’s financial statements, it managed to earn just about $3.5 billion. Its sales and operating expenses depleted this by just over $2 billion and after paying taxes and other expenses, its net profit was calculated at $805.3 million.
The company saw its investments growing marginally from $1.5 billion to $1.6 billion as was the case with its property, plant and equipment which saw its value increasing from $9.5 billion to $9.8 billion.
The company’s total asset base inclusive of trade and other receivables, prepayments and recoverable taxes at the end of June was recorded as $28.4 billion.
The company has since reported too that Chandramat Chintamani ceased being a Director on the DDL Board in April last but continues to serve as Executive Director of Demerara Shipping Company Ltd – one of DDL’s subsidiaries.
