Chairman of Banks DIH Clifford Reis announced that the group has big plans for the expansion of its operations with new products and the purchase of new equipment as part of the company’s modernization, despite increasing competition.
He made the statement at the company’s 56th annual general meeting held at Thirst Park yesterday.
According to Reis, capital expenditure in the new financial year will include the acquisition of new vehicles, a new malt handling system, a wort kettle, a reverse osmosis water system, a pasteurizer for the beer plant as well as the modernization of the No 1 Bar at Demico House, which will be renamed Stabroek Sports Bar. The chairman also revealed that the Campsite Restaurant will be torn down and the site sold to Citizens Bank for the construction of its headquarters in the coming months.
Reis said that in 2011, the group improved its overall performance by recording a profit before tax of $4.036 billion compared to $3.081 billion for 2010, an increase of $995 million or 31 per cent.
Net profit for Banks DIH Limited increased from $1.362 billion in 2010 to $1.934 billion in 2011, reflecting an increase of $572 million or 42 per cent. Profit before tax for the company was $2.802 billion compared to $2.226 billion in 2010, an increase of $576 million.
Reis said shares traded at a price of $12.20 on the last trading date. He said that the healthy share prices that the company is enjoying are indicative of investor confidence in the company’s performance, both now and in the future. He said earnings per share increased by 44 per cent.
Reis said the company continues to face increased competition from other brands from both legal and illegal importers. “There are now several established alternatives to almost all our products on the local market, for example, different types of beers, soft drinks, rums, vodkas, which are eroding our market share. We also face strong competition at our Demico outlets from other fast food restaurants,” he said.
He said that country’s relatively open market policies permit the unrestricted
importation of several competing products. “We need to have an understanding and appreciation of the fact that our company operates in a global environment. Long gone are the days of monopoly when consumers had little say in matters of what they should purchase,” he said.
“We need therefore to ensure that loyalty and commitment to our brands continue from the longstanding consumers who purchase our products each day,” he said.
He said the company in 2012 plans to increase its revenues and in the same vein increase profits, through increase in sales and the introduction of new products. He said the company also plans increased export sales of its rum, wine and beer. He said there is strong demand for the company’s products, especially rums and beer, in Europe and North America and the company will seek to move its brands in these markets.
“Prudent management of our financial resources will continue in the new financial year,” he said.
