Despite $10 bottle tax, Banks profits rise $501M –to build multi-storied car park

Jan 15, 2019 News

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Makers of the Banks Beer and franchise holder of Coca Cola are reporting that a new $10 environmental tax has affected its competitiveness.

In its recently released 2018 annual report, for year ending September 30, 2018 Banks DIH Limited Group’s Chairman and Managing Director, Clifford Reis, disclosed that the introduction of an Environmental Levy of $10 per unit for all PET and returnable glass containers was gazetted during the last financial year.
“…this affected the selling prices and therefore the affordability of our soft drinks and bottled water products,” the official said in the annual report.
The group’s third party revenue was $30.923B when compared with $30.006B in 2017, representing an increase of $917M or 3%.
The Trading Profit from Operations for the group was $6.837B when compared with $6.196 billion achieved in 2017, representing an increase of $641M or 10%.
Profit after Tax attributable to the shareholders of the parent company was $4.286B compared to $3.888B` in 2017, an increase of $398M or 10%.
According to Reis, in his Chairman’s Report, revenue generated by the company was $27.863B compared to $26.548B in 2017, an increase of $1.315B or 5%.
The profit before tax for the company was $6.032B compared to $5.079B, an increase of $953M or 18.8%; profit after tax for the company increased from $3.584B to $4.085B by $501M million or 14%.
“My fellow shareholders, the improved results achieved were as a result of the increases in physical case sales of our Malt Products, XM Rums and Banko Wines; our Golden Harvest Bread and Baked goods and our Demico and Crème Select Ice-creams and Frostee products. Additionally, benefits were also accrued as a result of efficiencies achieved from raw material conversion and 2018 improved production throughput arising from capital expenditure investment over recent years.”
According to Reis, the improved results were also as a result of lower prices negotiated for several raw and packaging materials as well as from the prudent management of our financial resources.
During the financial year, in terms of recapitalization, the company rolled out state-of-the-art technology through the medium of plant, machinery and equipment on all of the production plants and in all of the service departments, which enabled improved manufacturing and operational efficiencies.
“The new vehicle workshop and truck parking zone were commissioned along with the new offices for the Workshop Administration, Environmental and Safety Departments and the Building and Property Departments.”

The Chairman disclosed that also included in that development was new PET and Plastics chipping equipment for the in-house generated plastics waste.
“Our solar energy expansion programme was continued with the installation of a PV/solar system at our OMG and Main Street Qik Serv facilities. These departments are now partially powered by solar generated electrical power.”
Additionally, the company installed a new packaging line was installed on the Trisco Cookie and Cracker Plant and new production equipment was also installed in the Dairy and Novelty Ice Plant.
“Our distribution fleet was further enhanced through the acquisition of new trucks and forklifts. In the new year, our capital expenditure thrust will be focused on increasing our potable water storage capacity, the addition of increased fermentation and storage capacity for the Winery and the installation of a new CIP system for the Bottled Water Plant.”
This year, the company intends to continue transitioning to solar power.
“Additionally, my fellow shareholders, we will commence the construction of a new multi-story car parking facility which will include space for planned future development. This construction will be housed at the Demerara Park Area.”
In terms of Citizens Bank Guyana Inc., one of the companies in the group, Reis disclosed that the revenues of the 51% owned subsidiary was $3.160B.
The profit before tax was $1.009B and the profit after tax was $602.3M.
Net interest income was $2.24B.
The loan assets of the bank decreased from $28.2B to $25.5B in 2018 and Customer Deposits were $40.9B compared to $40.6B in 2017.
“My fellow shareholders, within the recently concluded financial year, we examined and evaluated new business models which are compatible with our existing business model to create wealth and value for our shareholders.
“These new business models will bring into our existing business portfolio, a new generation of products and services which will foster job creation and added value.”

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