Latest update February 6th, 2025 7:27 AM
Banks DIH records profit growth despite election-related setbacks
By Abena Rockcliffe
Banks DIH Limited has been able to see a 13 percent profit growth despite setbacks the company faced both in the lead-up to and after the May 11 General and Regional Elections, that resulted in a change of government after 23 years.
Banks DIH Chairman, Clifford Reis
Banks held its Annual General Meeting yesterday at the Georgetown Club on Camp Street.
In the Chairman’s report, Clifford Reis indicated much of the company’s successes recorded in the financial year ended September 30.
He indicated the company recorded profit after tax to the tune of $2.569B, compared to $2.265B in 2014. This represented an increase of $304M or 13 percent profit growth.
Reis said that the improvement came as a result of the increase in physical sales by three percent, increase in revenue by four percent and a reduction in operational expenses by four percent. He credited the reduction in operational expenses to internal efficiency measures as well as “favourable” material prices.
He noted too that the Group’s profit after tax attributable to shareholders was $2.945B compared to $2.660 billion, an increase of $285.0 million or 10.7%.
The Chairman told stakeholders that many lessons have been learnt from the rapidly changing global financial environment, exacerbated by geopolitical conflicts which appear not to be able to be contained within any one geographical area.
Closer to home, Reis pointed out that consumer confidence was eroded in the run-up to the last election cycle and the post-election events which resulted in a contraction of consumer spending.
“In spite of these challenges, we continue to adapt to the realities of operating in a rapidly changing business and social environment,” said Reis.
He added that Banks was able to utilize the collective knowledge and experience base which has been assembled over the years of existence.
Reis said that Banks’ focus continued to be the development and strengthening of shareholder value in 2015 by way of the capital improvements made to production plants, the delivery and distribution network, training in all areas to proactively respond to the rapidly developing technology and emerging market demands, and product and packaging development to satisfy the requirements of a younger and more discerning customer base.
The Chairman indicated that in order for Banks to achieve its “ambitious” growth targets, the company has over the past few years been investing in modernizing its production and distribution capabilities, especially in the Brewery, Soft Drinks, Rum, Wine and Ice-cream production facilities. These, he said, were complemented with the support services upgrade of the Power Generator, CO2 production, Steam Generation and Water Supply Systems.
He said that capital works continued with the acquisition and installation of a new biscuit oven and other equipment across the Company. The new “Crème Select” Ice-cream Outlet on Main Street was completed and opened for business in December 2014.
Reis indicated, too, that there was also the purchase of new trucks and forklifts and further upgrades of the Demico House facilities. He said that ongoing installation continues on an on-line blow mould machine for the Water Production Facilities and new filler for the Beer Plant. “We have benefited from these investments in the area of higher consistent yields and quality of products produced.”
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