DDL registers after-tax profit of $3.2b for 2018, up 26%
Beverage firm, Demerara Distillers Limited (DDL) says it recorded its highest revenue ever last year with total revenue for 2018 pegged at $21.862 billion and profit after tax standing at $3.279 billion.
The $21.862 billion in revenue marked an increase of $2.378 billion or a 12 per cent increase on the total revenue of $19.569 billion recorded in 2017, the company announced in a press statement received yesterday but dated March 8th.
It said that that the Group Profit after tax was $3.279 billion in 2018 compared to $2.6 billion in 2017, an increase of $679 million, or 26 per cent. Group Profit before tax for the year was $4.362 billion compared to $3.551 billion in 2017, an increase of $810 million, or 23 per cent. Earnings per share were $4.26 compared to $3.38 the previous year.
“It is with great pleasure that I announce to shareholders that the 2018 financial year was another very successful year with excellent performance from our Group. Revenue, both local and international, continued to show encouraging growth while significant progress was made in key areas of diversification,” DDL Group Chairman, Komal Samaroo, was quoted as saying in the Annual Report.
The statement said that during 2018, DDL focused on capital projects that support its core business as well as projects that are part of the ongoing programme of diversification. The company said that on March 16, 2018, a Barrel Warehouse facility was commissioned.
“The construction and commissioning of this new Barrel Warehouse serves to increase rum aging capacity by another 30,000 barrels,” DDL said.
The statement further pointed out that in October, preparatory work for the construction of a new and modern Blending Plant was started. This plant will utilise the latest digital technology to improve operational efficiency, reduce costs and will also
replace the existing Blending Operations. This new Blending Plant, which is estimated to cost $465 million, is expected to be completed by the end of June 2019, the statement said.
Meanwhile, for 2018, Shareholders’ Funds increased by 16 per cent. Capital Expenditure totalling $2.187 billion, incurred during the year, was all financed by self-generated funds. Addi-tionally, bank borrowing, in the form of loans and overdraft, was reduced by $1.437 billion from funds generated by the Group in the year. The net debt to equity ratio at the end of the year improved from 0.13:1 in 2017 to 0.06:1 in 2018, the company said.
The statement noted that an Interim Dividend of $0.25 per share was paid in December 2018. The Directors have recommended a Final Dividend of $0.85 per share which, if approved by the Shareholders at the upcoming Annual General Meeting, would result in a total dividend for the year of $1.10 per share. In the previous year, the dividend payment totaled $0.80 per share, the statement said.