Latest update November 21st, 2024 1:00 AM
Banks DIH’s profit soars to $5.2B in 2020 despite COVID
Chairman of the Group, Clifford Reis
Kaieteur News – Notwithstanding the challenges brought on by the COVID-19 pandemic and the contentious March 2, 2020 General and Regional elections, Banks DIH Group of Companies managed to rake in $5.271 billion in profits after tax for the financial year which ended on September 30, 2020.
Chairman of the Group, Clifford Reis, in the company’s annual report outlined that the profit before tax for the company was $7.329 billion compared to $6.167 billion achieved in 2019, an increase of $1.162 billion or 18.8% whereas the profit after tax increased by $4.524 billion to $5.271 billion by $747.0 million or 16.5%.
According to Reis, the company faced several challenges, chief among them were the post elections uncertainty and the nationwide mitigation measures which were implemented to counter the effects of the COVID-19 Pandemic.
“I can report that the Group, having experienced those challenges, by virtue of team work and commitment, was able to surmount the obstacles presented, utilizing the combined strengths of work-force, the market acceptance of our Brands, our effective selling and distribution network, and our loyal customer base,” he said.
The report outlined that revenue generated by the company last year was $30.468 billion compared to $29.597 billion in 2019, representing an increase of $871.0 million or 2.9%.
Added to that, the Group’s third party revenue was recorded at $34.222 billion compared to $32.917 billion in 2019 representing an increase of $1.305 billion or 4.0%.
The trading profit from operations went up by was 17.6% with $8.851 billion recorded for 2020 compared to $7.529 billion achieved in 2019. Reis revealed too that the company’s profit after tax attributable to the shareholders of the parent company was $5.666 billion compared $4.897 billion in 2019.
The Group’s net asset value per share also increased from $45.25 to $50.89 by 12.5%.
In addition to that, during the review period, Reis noted capital investments projects were undertaken without production and related facilities which led to the more efficient conversion of raw materials into finished products.
Several capital projects were also undertaken during the 2020 financial year and are expected to be completed in the coming months.
“These include the Beer Bottling and Soft Drink Plants’ upgrade, the installation of the new CIP System for the Rum Factory and the Winery, the installation of additional Records’ Storage Facilities, the completion of a New Motorized Truck Washing Facility and the continuing construction of the multi-level parking facility and headquarters for the new Banks Automotive and Services Inc.,” Reis explained.
Also for the year 2020, the Group’s shareholder Citizens Bank Guyana which holds a 51 percent stake, recorded a profit of $982.2 million, an increase of $26.9 million or 2.8% compared to $955.3 million in 2019.
The Bank’s revenue was recorded at $3.749 billion compared with $3.422 billion generated in 2019, an increase of $327.0 million or 9.6% with the net income recorded at $2.835 billion.
According to the report, the earnings per share were recorded at $16.51 while the total asset base was $63.8 billion. Loan Assets were increased from $29.8 billion to $31.7 billion reflecting an increase of 6.4% or $1.9 billion.
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