DDL records $5.3B after-tax profit for 2022; over $30B turnover – Chairman
…says US$100M to be spent on capital projects in grand expansion
Demerara Distillers Limited (DDL) has recorded a total after-tax profit of $5.3 billion for the year 2022, alongside a turnover of $31.4 billion, all results that came despite global crises… the ramifications of which were felt even in Guyana.
DDL Group Chairman and Chief Executive Officer (CEO) Komal Samaroo made the announcement during an event to mark the signing of a US$22 million loan with the International Development Bank (IDB) investment arm.
“In 2012, 10 years ago, the group turnover was $15.8 billion. Our audited accounts will show that it was $31.4 billion, almost double last year. Its profit after tax in 2012 was $1.3 billion. In 2022, it was $5.3 billion, a four-fold increase,” Samaroo said.
“In 2012, shareholders received dividends of 40 cents per share. In 2022, subject to the approval of the annual general meeting, they will receive $1.75, more than four times. And in 2012, the debt to every $100 of equity was $53, compared to $1 for every $100, that I said earlier.”
When it comes to how the company will use the money secured from the loan, Samaroo revealed that the company has a grand expansion plan in which $100 million will be spent on capital projects. This sum, according to Samaroo, will go a long way towards the company’s diversification agenda.
“In recent years, DDL group has been funding from self-generated funds its entire expansion, which in the last two years was in the region of US$25 million. Notwithstanding that, at the end of 2022, the company’s debt-to-equity ratio was a mere $1 for every $100 of equity.
However, given the present high inflation around the world and other supply chain challenges, the group must commit more resources to its working capital at a time when it plans to step up its pace of expansion.”
“Based on projects currently at various stages of implementation and planning, across the group, we estimate over the next three years to commit in excess of US$100 million for capital projects. The loan agreement will provide the resources required to fund projects in pursuance of the diversification strategy of the group and the transition to renewable energy,” Samaroo said.
Meanwhile, Samaroo mentioned other initiatives that DDL will be implementing for their staff, including the setting up of a medical centre, intensifying and expanding training, and pursuing the procurement of house lots for staff in need, with the relevant authorities.
At the halfway mark last year, DDL had announced that the group recorded $1.801 billion profit after tax. Meanwhile, its turnover for the period – January 1 to June 30, 2022 – was $14.17 billion.
Samaroo had highlighted at the time in their mid-year report, that the Group managed to maintain a robust level of performance despite a challenging background caused by global crises – most of which were external in nature but adversely affected the results for the period.
Samaroo had further highlighted that the first half of 2022 was extremely challenging for the DDL Group, as it battled to overcome a series of overlapping crises.
The Group’s turnover for 2021 was more than $27.6 billion compared to almost $24.7 billion in the previous year, 2020. Profit After Tax for the 2021 Financial Year was $4.789 billion, reflecting an increase of $896 million or 23 per cent over that in the previous year.
In that report, the Chairman noted that the DDL Group continues to invest in the expansion, diversification, and upgrade of its production capacity to take full advantage of the positive economic environment while ensuring international competitiveness in the segments in which it operates. (G-3)