Rum year for DDL
-After tax profits up 8%
Stabroek News
May 28, 2004
The Demerara Distillers Ltd saw its net group profit before taxes increase to $1.2B in 2003, up by 20% from $1.B in 2002. Group revenues increased to $10.7B from $9.1B and after tax profits reached $811M ($752M), an 8% increase.
In its annual report ahead of a general meeting on June 11, DDL reports that it paid an interim dividend of 10 cents per share in November and the directors recommend a final dividend of 23 cents. If approved this would mean a total dividend pay out for 2003 of $254M an increase of 10% from 2002.
DDL Ltd saw increased turnover of 11% to 8.2B while profits increased by 21% to $1B. All divisions improved on the previous year with the beverage department increasing by 8%.
Net savings from self generated power, the improved Euro and fairly constant prices for raw materials all impacted favourably.
Meanwhile the company invested US$2M in the aging of rums. The capital expansion and aging programmes were financed mainly through borrowing at attractive interest rates. The result was an increase in interest expense from $188M to $259M.
Subsidiary turnover increased 22% to G$4B and their contribution to group profits was $162M. The associated company BEV (seafood processors) contributed a small after tax share of profits compared to a loss in 2002.