BANKS DIH hosts 55th Annual General Meeting

Jan 24, 2011 News

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Over 1,000 BANKS DIH Limited shareholders, attended the company’s 55th Annual General Meeting (AGM) at its Thirst Park, Georgetown location yesterday to learn of the progress which the company recorded in the year ending September 30, 2010, as it related to overall management, new innovative ideas and whether the company recorded a substantial profit.

The company’s Chairman/ Managing Director, Clifford Reis told the gathering yesterday “We improved our overall performance by recording a profit before tax for the group of $3.081 billion compared to $2.345 billion in 2009, an increase of $736.0 million or 31 percent.
Reis stated that the profit after tax for the group attributable to Shareholders showed a “significant increase” from $1.286 billion to $1.602 billion in 2010, an increase of $316.0 million equivalent to 25 percent.
The company’s net profit increased from $1.121 billion in 2009 to $1.362 billion in 2010, reflecting an increase of $241.0 million or 21 percent.
Profit before tax for the company was $2.226 billion compared to $1.838 billion in the year 2009, an increase of $388.0 million (21 percent).
The Chairman explained that the improved financial results for 2010 were as a result of: an increase in physical sales by 17 percent, an increase in selling prices, higher export sales, efficiencies derived from the restructuring for the company’s operations, the enhancing of its distribution network by the acquisition of new vehicles for BANKS DIH Sales Fleet and the increase of Citizens Bank Guyana Inc’s net profit by 37 percent.
CAPITAL EXPENDITURE
During the year under review, the beverage company continued its programme to optimise its manufacturing processes to improve production and quality, and the distribution of its beverages and food products.
Reis said this is evidenced in the acquisition and installation of a new Krones Bottle Washer for the Beer Bottling Plant and new equipment for food preparation at the company’s restaurants.
He continued to state that BANKS DIH’s Plant and Machinery Replacement Policy will “be continued in 2011 and beyond with a view of utilising current technology to improve efficiencies and better respond to increasing demand for our products.”
According to the company’s Managing Director, the soft drink glass line will be “de-commissioned” and a new state-of-the-art Krones 1500 BPM Soft Drink Plant will be installed. The Waste Water Treatment Plant which was under construction at the time of reporting, was completed and commissioned at the end of December 2010 in accordance with the company’s contractual agreement with the Coca-Cola Company and in keeping with the company’s commitment to the protection of the environment.
It was reported that capital expenditure within the new financial year will encompass the acquisition of additional vehicles, the replacement of the CO2 Generating Plant, the installation of a new Electronic Bottle Inspector (EBI) and Checkmat System for the Beer Bottling Plant.
DIVIDENDS
The Board of Directors declared a first interim dividend of $0.14 per share which was paid on May 17, 2010; a second interim dividend of $0.14 per share was paid on October 18, 2010 and recommended that a final dividend of $0.22 per share payable on January 24, 2011. The total dividend for the year is $0.50 per share with the overall cost being $500 million.
QUALITY CONTROL
BANKS DIH was awarded a Gold Medal for its Premium Beer at the 2010 Monde Selection Awards Ceremony held in Brussels and was also recognised by Diageo as the Leader in volume sales for Guinness Stout in the Caribbean and Latin America by the Diageo Company at its Annual Awards Ceremony for 2010 held in Amsterdam, Holland.
The company has embarked on the implementation of the ISO 22000:2005 standard across its operations. The ISO 22000:2005 programme is an international standard which specifies the requirements for a food safety management system. The system is being developed and implemented into BANKS DIH’s Dairy and Soft Drink operations.
Reis stated “it is the company’s vision to have all the company’s operations fully ISO 22000:2005 compliant by 2012″.
CITIZENS BANK
According to Reis, Citizens Bank Guyana Inc, a 51 percent owned subsidiary of the company improved its revenue from $1.789 billion to $1.937 billion by $148.0 million equivalent to 8 percent. Profit after tax was $535 million as compared to $391 million, an increase of $144 million (37 percent). The improved profitability was due to an increased interest and other income.
Total assets increased by $6.2 billion from $20.9 billion to $27.2 billion (or 30 percent).
Loan asset increased by 18 percent over the previous year to $12.3 billion. Deposits also increased from $17.9 billion by $5.5 billion or 31 percent.
Earnings per share were $8.99 compared to $6.57 the previous year.
CUSTOMER SERVICE/ DISTRIBUTION
During the year, the company’s Marketing Director, George Gladstone Mc Donald, was appointed to the position of Assistant Managing Director and former Finance Director, Azam Khan, who retired after 40 years’ service will continue to avail himself as a non-executive Director on the Board of Directors.
Reis said “across the group we have implemented a number of reporting measures which have strengthened the accountability and stewardship of the business. Additionally, we have also invested in the upgrade of our Information Technology infrastructure for the more effective processing and dissemination of data and information”.
The Managing Director added that the company continues to be committed to its social partnerships as is reflected in the significant contributions made to educational, cultural, sporting, religious and environmental projects. He posited that BANKS DIH will continue to award scholarships for students and place more training for staff as well as hiring more trained personnel.
In closing, the financial statements for the year ended September 30, 2010 and the reports of the Directors and Auditors were adopted with no objections from any shareholder present.
Another part of the AGM included 39 employees of the company being recognised for their long-standing service within two categories; those who served 20 years and those who served 25 years at BANKS DIH.
The Chateau Margot and F.E Pollard Primary Schools, the Friendship Secondary and Bladen Hall Multilateral School were also beneficiaries of monetary awards by the company.

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