At the 90th Annual General Meeting of the Demerara Tobacco Company Limited (DEMTOCO), held Friday the company reported a 9.7% increase in Profit After Tax, climbing from G$2.07 billion in 2022 to G$2.27 billion in 2023.
This growth, under the leadership of Managing Director, Mr. Vijay Singh, has been supported by a 4.4% increase in revenue driven by enhanced operating efficiencies. These results the company said were achieved amidst a challenging global environment characterized by logistical disruptions, inflationary pressures, and international political tensions, which DEMTOCO successfully navigated in order to deliver significant value to its shareholders.
Singh highlighted the company’s strategic focus on strengthening its portfolio of international brands. “Our premium brand Dunhill has once again shown outstanding performance, with a growth of 9.5% for the third consecutive year. This is a testament to our commitment to innovation and providing a premium experience to our consumers,” said Singh. Additionally, the migration of the Bristol brand to the globally recognized Lucky Strike has positioned DEMTOCO to leverage brand strength and drive future growth.
At the meeting the managing director also addressed the challenges posed by the illicit trade of tobacco products, which has significantly impacted the industry. He reported the market share of illicit cigarettes has risen alarmingly to an estimated 29%, representing a 100% increase in just one year. Singh called for urgent intervention, stating, “If this trend continues, we could see an estimated loss of G$1 billion in government revenue by the end of 2024.”
DEMTOCO has been proactive in advocating for stronger enforcement to combat the issue of illicit trade, which undermines legitimate businesses and poses risks to the economy. The company appreciates the efforts of the law enforcement agencies such as the Guyana Revenue Authority and the Guyana National Bureau of Standards in seizing illegal products and calls for increased collaboration to tackle this pressing issue.
Despite these challenges, DEMTOCO’s resilience and strategic initiatives have ensured sustained growth and shareholder value.
The meeting was held at the Marriott Hotel.
