Banks DIH records another successful year
Guyana Chronicle
January 21, 2007
BEVERAGE giant Banks DIH Ltd has recorded another successful year albeit with a reduced profit margin.
Managing Director of the company, Mr. Clifford Reis, at its 51st Annual General Meeting yesterday, reported a turnover of $14 billion for 2006 compared to $13.2 billion in 2005.
He said the after tax profit for last year was $781.4M, against $823M in 2005.
Reis, however, explained that the reduced profit must be viewed against the steep increase in fuel prices during the year by an average of 49.9% which cost the company an additional $335.8M.
He added that this increased cost of fuel was not budgeted for and could not have been passed on totally to the consumers because of the competitiveness of the official market and the growing unofficial market, which includes smuggling and under invoicing of imports.
The Managing Director said the increased consumption tax on beer and liquor from 50% to 60% continues to affect his company’s competitiveness as well as demand.
He said taxes paid to the government increased from $3.6 billion in 2005 to $3.8 billion in 2006, but he assured that the working capital of the company remains strong and at the end of the year stood at $3.4 billion, an increase of 6.4% over the previous year.
Reis reported also that the Board of Directors declared a first interim dividend of $0.12 per share which was paid on May 30, 2006, a second interim dividend of $0.12 per share which was paid on October 23, 2006 and now has recommended a final dividend of $0.16 per share payable on January 22, 2007.
The total dividend for the year is $0.40 per with the overall cost being $400M, Reis indicated.
Citizens Bank Inc., a 51% subsidiary of the company, achieved $347.3M in after tax profit compared to $345.5M in 2005, Reis reported but pointed out that the profit for the year was affected mainly by the failure of the government to honour repayments of bonds held by the bank.
He noted too that Banks Holdings Limited now owns 20% of the share capital of Banks DIH Ltd. and the latter holds 9.2% of the share of capital of the former.
“The synergies from this relationship have progressed and benefits and export sales have started to accrue to both companies. Banks DIH Ltd will shortly commence the bottling of Plus Energy Beverage under licence from Banks Holdings Ltd,” Reis announced.
But apart from its business commitments, he said Banks DIH Ltd continues to take an active part in social activities through support given to culture, education and sport and other community projects.
“Over the years of our existence we have come to understand that what we do and achieve within the company, touches and impacts the lives and wellbeing of countless persons who live and work outside the boundaries of the company,” Reis offered.
The company also honoured long serving workers in the categories of those with 20 years and 25 years and made monetary donations to four schools, including Agricola Primary, Christchurch Secondary, Bush Lot Secondary and President’s College.
Reverence was also paid to the first Managing Director and his wife, Peter and Kathleen D’aguair and other past directors and employees who have all passed away.