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The Banks DIH Group raked in $6.7B in profit after tax in 2021, notwithstanding the impacts of the Coronavirus (COVID-19) pandemic which have taken a toll on economies around the world.
“For the period ended September 30, 2021 the profit’ after Tax for the company was $6.777B compared to $5.271B, an increase of $1.506B or 28.6%,” its Chairman and Managing Director, Clifford Reis said in his report.
It was explained that the company’s improved performance was as a result of an increase in physical sales by 6%, the increase in dollar sales turnover by 17.7%, management of operational expenses and better yields derived from raw material utilization.
Banks DIH’s Profit before Tax was $11.078B – an increase of $2.179B or 24.5% when compared to the $8.899B raked in 2020.
“Profit after Tax for the Group attributable to shareholders of the parent company was $7.170B compared to $5.666B in 2020, an increase of $1.504B or 26.5%. The Group’s Net Asset Value per share has increased from $50.89 to 58.87 by 15.7%,” Reis explained.
Based on the Group’s success, the Board of Directors has recommended that a dividend proposal of $1.70 per share unit. Such would result in an overall cost of $1.445B as compared with $1.147B in 2020 – an increase of $298M or 26%.
Notably, Banks DIH generated $35.858B in revenue in 2021 compared to $30.468B in 2020 – an increase of $5.390B or 17.7%. “The Profit before Tax for the Company was $9.439B compared to $7.329B achieved in 2020, an increase of $2.110B or 28.8%, while the Profit after Tax for the company increased from $5.271B to $6.777B by $1.506B or 28.6%,” the Chairman further reported.
But the Financial Year, Reis said, was not without challenges. According to him, many of the challenges were as a result of the COVID-19 lockdown and restrictions which contributed to curtailed market conditions.
“There were unavoidable increase in the cost of raw and packaging materials, spares and fuel as well as their availability due to the global supply chain issues caused by the COVID-19 pandemic. The company was able to mitigate some of the effects of this issue as a result of the investment in upgraded plant and machinery to enable the extraction of better yields from raw materials used,” Reis explained.
He said notwithstanding the challenges posed, Banks DIH continues to supply its customers with a range of quality beverages and food products as it seeks to remain at the forefront of the highly competitive market.
As part of its plan to improve its efficiency through the use of new technology, Banks DIH upgraded its malts packaging line to enhance the effectiveness of the bottling process. Additionally, the Soft Drinks Plant saw upgrades to the Blowmoulder, Filler, Labeller, Shrink Wrapper and Pallet Wrapper. The Rum and Winery operations also received new Labeller and CIP System and new Fermenters respectively.
“In the Trisco Division, the Bakery was upgraded with new Intermediate Proofer, Conveyors and Moulders while a new Sugar Pulveriser Mill was installed on the Biscuit Plan in order to improve the quality of our cookie, cake and pastry products,” Reis further detailed.
He noted that overall customers’ experience was enhanced due to the systems and projects initiated.
As a rollover from 2021, the company is in the process of acquiring lands at Vreed-en-Hoop and Bartica to pave way for the construction of two new Qik Serv Restaurants.
“The Soft Drinks Plant Syrup Room and Blending Facility are being upgraded to facilitate the production of Minute Maid products under the license from the Coca-Cola Company, a new Malt and Rice Mill as well as a new Centrifuge System will be added to the Brewery. A new Bottled Water packaging line will be installed at the Industrial Site location,” the Chairman further detailed.
Turning his attention to Citizens Bank Guyana Inc – a 51% owned subsidiary of Banks DIH – Reis reported that the commercial bank generated $3.949B in revenue compared to $3.749B in 2020, representing an increase of $200M or 5.3%.
Meanwhile, Banks Automotive and Services, a 100% owned subsidiary of Banks DIH, generated $57.5M in revenues. The Profit before Tax was $2.1M. “In 2022, the new multi-story vehicle parking facility and corporate offices and show room of Banks Automotive and Services Inc. will be completed,” Reis assured.
Going forward, the Chairman said Banks DIH Group must remain positive notwithstanding the challenges likely as a result of the global pandemic. He is optimistic that Banks Automotive and Services Inc. will be the division to lead in the development of its future solar power and automotive initiatives.