Banks DIH records $8.9B net profit for 2023

With its annual shareholders meeting set for Saturday, local food and beverage giant Banks DIH Limited is set to announce that it registered a net profit of a whopping $8.970 billion last year, up 6% from 2022.

“The overall performance of the group improved by recording a profit before tax of $14.5 billion compared to $13.398 billion in 2022, an increase of $1.11 billion or 8.29%. Profit after tax for the group attributed to shareholders of the parent company increased from $8.395 billion to $8.970 billion, an increase of $575 million or 6.8%,” Chairman Clifford Reis stated. The Chairman’s Report, part of the 2023 Annual Report, was sent to shareholders ahead of the AGM this Saturday.

“Revenue generated by the company was $44 billion, compared to $39 billion for 2022, an increase of $4.395 billion or 11.1%. The profit before tax for the company was $11.3 billion compared to $10.5 billion achieved in 2022, an increase of $887.0 million or 8.4%, while the profit after tax increased from $7.589 billion to $8.19 billion by $540 million or 7.1%,” the report added.

Reis said that the Board of Directors of the company has recommended “a dividend proposal of $2.50 per share unit,” resulting in an overall cost of $1.8 billion, as compared with $1.7 billion in 2022. The increase amounts to $170 million or 10%.

“The Board of Directors declared a first dividend of $0.45 per share unit, which was paid on May 18, 2023. A second interim dividend of $0.45 was also paid on October 26, 2023, and now the Board of Directors recommend a final dividend of $1.30 per share unit, making the overall dividend per share unit $2.20 or an overall cost of $1.870 billion, an increase of $170 million or 10% over the previous year,” Reis said.

The Chairman’s Report pointed out that the financial year, which ended on September 30, 2023, had many challenges which included supply chain delays and increases for raw and packaging material, spares, energy, distribution and retention of skilled employees.

But he noted that the company’s strategy focused around its employees and customers to “drive sustainable solutions and build resilience” in its manufacturing processes, maintaining the production of high quality products and efficiency in operations.

As it relates to capital expenditure, the report said that Banks DIH continues to make “capital investments in plant, machinery and equipment in order to strengthen long-term development, bolster its manufacturing capacity and improve operational efficiency.

Capital works were completed with the acquisition of a 120HL Brew House to enhance the company’s brewing capacity of its malt products. There was also the acquisition of a blow moulder, conveyors and puncheons for the rum division, as well as a new on-line blow moulder for the soft drink plant.

The food division, according to the report, was enhanced with packaging equipment spiral mixers, bag sealing unit, conical rounder and temperature control equipment.

The company’s power generation plant was also upgraded with new switch gears, overhauling of its generators and the installation of alternative power equipment.

The report said that several of the company’s land holdings and buildings were upgraded and these included the Berbice Branch Bonds, Special Events outlets and the Linden Branch. Construction continues on its elevated car parking facilities.

Last year, Banks DIH also acquired some 40 acres of land, which it said will be put toward future development and expansion of the company.

The company also bought a number of trucks and forklifts, as it seeks to bring more products to its customers countrywide.

For the financial year 2024, the company said, its capital expenditure will “focus on the upgrade of the No 1 and No 2 Soft Drinks Plans, the Dairy Plant, Bakery Transport, Power Generation and Land Development.”

As it relates to Citizens Bank Guyana Inc., a 51% subsidiary of the company, revenue was $5.6 billion compared to $4.847 billion for 2022. The profit before tax was $3.2 billion and after tax was $1.9 billion, this represented an increase of $146 million or 8.1%.

Banks DIH Ltd had no outstanding loans owing to Citizens Bank Inc at 30 September 2023, the report said.

Banks Automotive and Services, a 100% subsidiary, saw a profit before tax of $9.2 million compared to $5.9 million in 2022. It represented an increase of $3.3 million or 55.9%. This year, the new multi-storey vehicle parking facility, corporate offices and showroom is expected to be opened for use.

“My fellow shareholders, irrespective of the challenges which confronted us during the period under review, we were able to record growth in shareholder value,” Reis added.

Meanwhile, as it relates to Total Quality Management and Environment Safety

Functions, the Chairman’s report stated that for the period under review, the company continued aiming to achieve the highest standards in Product Quality, Health and Safety and Environmental Standards.

“In this regard, the production plants successfully completed surveillance audits for the International Organisation for Standardisation (ISO) and Coca Cola Quality and Safety Management Systems:

• ISO 9001:2015 - Quality Management Systems (Surveillance Audits, Certification and Recertification Audits) for the Soft Drink Plant, Novelty Ice/Dairy Plant, Rum Factory and Carbon Dioxide Manufacturing.

• ISO 22000:2018 - Food Management Safety Systems for the Soft Drink Plant, Novelty Ice/Dairy Plant and Carbon Dioxide Manufacturing

• ISO/TS 22002-1:2009 - Prerequisite Programmes on Food Safety for the Soft Drink Plant, Novelty Ice/Dairy Plant and Carbon Dioxide Manufacturing.

• Food Safety System Certification (FSSC) Standard Version 5.1 for the Soft Drink Plant, Novelty Ice/Dairy Plant and Carbon Dioxide Manufacturing

• Made in Guyana Mark by the Guyana National Bureau of Standards for all of our locally manufactured products,” the report stated.

During the year, the company’s brewery achieved in the Guinness League of Excellence, third in the Americas out of 14 breweries and 19th Worldwide out of 49 breweries.

“We were in compliance with all the operational requirements with regard to the manufacture of products of Royal Unibrew,” the report said.

The Environmental and Safety Department was able to successfully complete the Surveillance Audits for the Safety Management System ISO 45001:2018 and the Environmental Management System ISO 14001:2015. The department was also able to acquire all relevant safety Certificates of Compliance for the year 2023 from the Guyana Fire Service, Guyana Energy Agency, Mayor and City Council and the

Ministry of Labour.

The company continues to invest in capacity building through training and skill building.

During 2023, over 350 employees were trained in the area of Health and Safety. Additionally, 35 employees were trained as Fire Marshalls.

And when it comes to community relations and partnerships Banks DIH said that it would “continually strive to cultivate meaningful relationships within our business, establish connections with our local community, and engage with various organisations and individuals.”

Additionally, the company continues to support religious and faith-based communities, as well as sporting events. “Our commitment to educational initiatives remained steadfast with the continuation of apprenticeship and work study programmes, continuous training, facilitated by our Training Department, was conducted for employees at all levels. Moreover, we provided bursaries to eligible students, specifically the children of employees and shareholders who excelled in the National Grade Six Assessment examination. Additionally, sponsorships were granted to individuals pursuing degree programmes at both the University of Guyana and the GuySuCo Training Centre,” the company said.

And as the Chairman reflected on the past year, he stated that it demonstrated the company’s resilience in overcoming challenges; he does not see future progress being any different.

“As we anticipate the upcoming financial year and beyond, our strategic approach involves maximising the potential of our Global Brand Portfolio as well as solidifying our standing as a consumerfocused entity. We are committed to building upon our well-established foundations by prioritising reinforcement of our core strengths, including advancements in marketing, innovation, revenue growth, management, and execution. This dedicated focus aims to enhance value for our shareholders, suppliers, employees and customers,” the report stated.