DDL on track to triple production with $10B expansion plans - Chairman

DDL on track to triple production with $10B expansion plans – Chairman

Apr 14, 2024 News

DDL’s Chairman, Komal Samaroo

…reports sustained profits over past five years despite volatile Int’l market

Kaieteur News – The Demerara Distillers Limited (DDL) recorded a 12 per cent increase in its after-tax profit in 2023 during a period its Chairman Komal Samaroo said “spirit sales saw declines in most major markets”.

The increase in after-tax profit last year continues the company’s upward trajectory of successive financial returns over the past half decade with the company reporting profit before taxes, back in 2019 at just over $4.5B, while in 2020, this went up to $5.2B.

The following year, 2021, as the world was still grappling with the COVID-19 Pandemic, DDL reported a profit before taxation of $6.4B, and the following year 2022, this went up to $7.1B.

At the Annual Shareholders meeting planned for Friday, venued at the Guyana National Stadium, the Chairman in his report is expected to report a whopping $7.6B in returns for last year.

Given the increase in returns for DDL, the Directors have since also proposed a substantial hike in dividends payout. Up for a vote, is an additional dividend payment of $1.60 per share. This in addition to an earlier interim pay out of $0.40. Once approved it would bring the total dividends $2.00 per share, up from the previous year payout to $1.75 per share.

Meanwhile, DDL’s Chairman speaking on the company’s expansion plans said $10B will be utilized over a three-year period – 2022-2025, the single largest investment being pursued by the company.

“When completed, the capacity of this operation will almost be tripled provided a wider range of products for both domestic and export markets,” Samaroo said.

To this end, he reported that over the past year the company has continued works on its Beverage Plant Expansion. As it relates to the distiller service equipment replacement, Samaroo reports that this aspect of the company’s expansion plans is in its final stages. This is in addition to works on the group’s World Trade Centre, the Moblissa Dairy Project, in addition to the upgrading of its port facilities and a new warehouse.

Except for the Expansion of the Beverage plant, each of those projects are expected to be fully operational by the end of this year, the Chairman said in his report.

The company’s $430M expansion of the storage bond for the liquor bottling plant in addition to another $225M expended on drainage enhancement have been completed so far.

According to the Chairman, to facilitate the continued expansion plans, the group last year secured a US$22M Inter-American Development Bank loan. Thus far, US$15M or $3.1B had been utilized.

Looking ahead, the Chairman noted the 57.9 percent increase approved in the 2024 National Budget for Public Sector Investment programme. He disclosed that DDL intends to continue its international marketing drive to expand the distribution of its rum brands in unserved markets around the world.

The group’s financials were audited and signed off on, by TSD Lal and Company Chartered Accountants.

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DDL’s Chairman, expansion, Komal Samaroo, production, track

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