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Banks Guyana is not for sale
2015 was a very good Year – Clifford Reis
By Mondale Smith
To rousing applause, Chairman Clifford Reis yesterday reassured shareholders that “Banks DIH Guyana is not for sale”. His comment was prompted by expressions of concerns. The performance last year “was very good,” he said.
He however noted that the past year may not have been outstanding in a general performance synopsis, as Banks DIH celebrates 60 years of
Chairman Clifford Reis
being the first publicly traded company ever in British Guiana.
Many external factors prevailed such as consumers’ reaction during the post national elections period.
This statement however was not as earth shattering to shareholders as was the chairman’s announcement that “Banks DIH Guyana is not for sale” and that they are to benefit from a total of $600M, some of the proceeds of the sale of the company’s shares in the Barbados beverage company.
He said the year would have been outstanding if the company had gone to at least 20 percent but that was not the case.
Reis allayed queries and fears by emphatically assuring the shareholders that they are the beneficiaries of the sale of the Barbados shares even as the ‘journey of discovery’ continues for the company.
This was greeted by rousing applause from those who attended the shareholders’ meeting at Thirst Park, Saturday evening.
Reis, who is also the Company’s Managing Director, noted that the shares in Banks Barbados were sold for a net gain of $1,147B to the company.
“The company did good enough to pass the figures of their 2014 accounts so we had a good year.
“So the shareholders are going to get 35 cents on every share at the final dividend on Monday morning and then they are going to get 60 cents on every share on the 15th of February.”
This means that shareholders will have $95 cents on every share which will cost Banks an estimated $950M.
There are three commercial benefits of the sale of the shares which include the enhancement of training of employees.
“Banks Barbados is now owned by SLU ltd and this company brings many beers such as Corona, Bicalo, Skol, Brama, Bex etc a whole variety. Barbados will do some of these beers and we will do some and then we will exchange.
“Guyana needs a premium beer at a reasonable price which can be done if we manufacture locally.”
Eight years ago Banks DIH had meetings with Embev with a view to producing Becks beers locally which saw the purchase of bottles etc. but the company soon after merged with Budweiser and the whole plan was placed on the back burner.
“It’s not that Banks Guyana brewery can’t manufacture foreign beers, plus all the investments we have done it makes it better for us to win a contract to international stuff such as Skol or Brama, a Brazilian beer, given our geographical closeness to Brazil and the Brazilian population in Guyana.
Shareholders at the Annual General Meeting.
Speaking of the rum industry Reis said after many years of attempts to sell its rum overseas the company has finally signed a contract with the Royal Wines Company in New York. As a result of this move Banks has already sent out two containers of rum to the USA.
While noting that the Guyanese population in the Diaspora is large he said it’s not at saturation point in New York as yet. “We don’t want them to be confined to the one area so they are now going to move to areas such as Virginia and Florida to sell all our rums.”
It was also announced that the Citizens Bank will be opened at Camp and South Road in early April.
Reis sharing the report on the company’s performance for the period ended September 30, 2015 said the profit after tax was $2.569 billion compared to $2.265 billion for 2014 which represents an increase of $304.0 Million or 13%.
This improvement was as a result of the increase in the physical sales by three per cent, an increase in revenue by four per cent due to internal efficiency measures and favourable material prices.
Closer to home Consumer confidence was eroded in the run up to the last elections cycle and the post elections events. These resulted in a contraction of consumer spending. In spite of these challenges Reis said, “We continue to adapt to the realities of operating in a rapidly changing business and social environment.
The Groups turn over net of taxes was $24.875 billion compared to $23.695 billion in 2014, an increase of $1.180 billion or five per cent.
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