Latest update January 5th, 2025 2:36 AM
Banks DIH pursues diversification of financial portfolio – Reis
Chairman of the Board of Directors for Banks DIH Limited, Clifford Reis addressing shareholders.
Chairman of the Board of Directors for Banks DIH Limited, Clifford Reis, assured hundreds of shareholders that while several expansion projects are planned for 2018, the board is actively pursuing diversification for its financial portfolio.
“We have a lot of robust plans to carry banks forward,” Reis stated at the company’s 62nd Annual General Meeting (AGM) held at Thirst Park on Saturday, last.
The group raked in $30B in revenues, more than $1.2B than the previous financial year that had ended in September 2016.
The group in its Chairman’s Report of the 2017 Annual Report is crediting the good showing from better sales of its beers and other products and heavy investments in its plants and machinery at the Thirst Park site.
According to the company, third party revenue was $30B compared to $28.76B in 2016, an increase of $1.243 billion or 4%. The trading profit from operations for the group was $6.19B compared to the $5.066B recorded in the previous year, an increase of $1.130B or 22.3%.
Responding to questions from shareholders during the AGM, Reis stated that diversification will be pursued.
“Diversity is a plus for banks, since we are not going to continue doing this…this gets to a level and wouldn’t grow any more. So what do you do? You have to move it into different areas,” Reis stated.
In the previous financial year ended September 2016, the group benefitted from the one-off gain of $1.409B after it disposed of its investment securities held in Banks Holdings Ltd and Desnoes and Geddes (Jamaica) Ltd and the dissolution of BCL (Barbados) Ltd.
“Excluding the impact of that one-off gain in 2016, the Company’s Profit after Tax increased from $2.948 billion to $3.584 billion, this being $636.0 million or 21.6%,” the Chairman reported.
It was disclosed that the improved results were made possible through the increases in sales of Banks’ malt products, aerated and liquor beverages and food products.
At Citizens Bank Guyana Inc. a 51 percent owned subsidiary of the company, revenues were $3.553B compared to $3.266B, an increase of $287M or 8.8 %.
A section of shareholders at the 62nd Banks DIH Limited AGM
Last year, in addition to international recertification, Reis disclosed that Banks was successful at the Finance, Environment and Safety audits that were conducted by the Coca Cola administration.
The company also performed exceptionally in the Guinness League of Excellence which resulted in the company earning the Second position in the Americas and fourth worldwide for the manufacture of Guinness Stout as at 30 September, 2017.
The group is now targeting further investments in solar energy, an initiative which was tested and introduced in 2017 at its Main Street Qik Serv Restaurant.
FUTURE INVESTMENTS
Reis pointed out to shareholders that funds which are lying in banks earn roughly 1.4% interest in the bank and attract taxes while dividends are tax-free.
“You are earning more in Banks DIH than you are earning in the bank and this is where we have to educate the next generation which is coming up about investment; not just leaving money in the bank,’ Reis stated.
The Chairman noted that even large pension funds in Guyana don’t get involved in buying shares in certain companies. Reis also emphasised that educating the next generation should start at the high school level.
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
The PPP is in self-destructive mode
Peeping Tom… Kaieteur News –The PPPC is not some scrappy garage band trying to book a gig at the Seawall Bandstand.... more
Breaking the Chains of Poverty: A need for political will
By Sir Ronald Sanders Kaieteur News- The year 2024 has underscored a grim reality: poverty continues to be an unyielding... more
Weekend Cartoon
