Banks DIH registered a profit of $2.569b for last year, a 13% rise over the 2014 figure.
In his Chairman’s report in the company’s annual report for 2015, Clifford Reis said that the rise in profit of $304m for the beverage giant was a result of an increase in sales by 3%, a rise in revenues by 4% and a decrease in operational expenses by 4%.
He noted that over the past few years, the company has been modernizing its production and distribution capabilities particularly in respect of the brewery, soft drinks, rum and ice-cream. He said these were accompanied by a support services upgrade of the power generator, carbon dioxide output, steam generation and water supply systems. Reis said that during the year capital works continued with the purchase and installation of a new biscuit oven. New trucks and forklifts were also acquired for the further upgrade of the Demico House facilities.
Installation continues, he reported, on an on-line blow mould machine for the water production facilities and new filler for the beer plant. The directors’ report said that the Banks’ Group spending on capital works amounted to $4.3b.
Reis said that the Group’s net asset value per share has risen from $25.9 by 10% to $28.6 and the Group has upped its dividend proposal to shareholders to $0.69 per share unit to an overall cost of $690m. The board of directors declared a first interim dividend of $0.17 per share which was paid on 28 May 2015, a second interim dividend of $0.17 per share which was met on October 22, 2015 and now recommends a final dividend of $0.35 per share unit.
The Chairman disclosed that dividends received from Banks Holdings Limited, Barbados for the year amounted to $44.4m and dividends paid to Banks Holdings Ltd, totalled $128.1m based on investments made with each other.
Banks DIH last year sold its shares in Banks Holdings after a bidding war in Barbados for the company. The competition for the shares resulted in a lucrative opening for Banks DIH and it sold its shares. A Brazilian company now owns Banks Holdings, Barbados, thwarting a counter offer by Trinidad-based conglomerate ANSA McAl.
In a statement in December on the sale, Banks DIH said the sale of the shares was both “financially and commercially advantageous” and will increase shareholder value.
The company reported the sale in its 2015 report thus:
“On 02 December 2015 the Company sold its holding of ordinary shares in Banks Holdings Limited, which amounted to 4,358,815 ordinary shares or 6.7% of the issued share capital of that entity to SLU Beverages Ltd. The transaction was carried out on the Barbados Stock exchange at a price of Bds$7.10”.
The report said that Citizens Bank Guyana Inc, a 51%-owned subsidiary of the company saw profit after tax of $907m for 2015, compared to $989m in 2014.
Reis said that consumer confidence was eroded in the run-up to the May 2015 general election and during the post-election occurrences which resulted in a reduction of consumer spending.
The company’s 60th Annual General Meeting is set for Thirst Park, Georgetown on Saturday, 23rd January 2016 at 5 pm.
