The Demerara Distillers Limited (DDL) Group recorded an after-tax profit of $5.32b for 2022, $532m over the previous year or 11 percent higher.
According to the DDL annual report, profit before tax for 2022 was also 11% above the figure in the previous year.
According to the report of the Chairman, Komal Samaroo, Group turnover for the year was $31.4b compared to $27.6b in 2021, a rise of 14%.
The earnings per share for 2022 was $6.91 compared to $6.22 in the preceding year.
Samaroo said that an interim dividend of $0.40 per share was distributed in November, 2022. He added that the Directors have recommended a final dividend of $1.35 per share which, if approved by the shareholders at the Annual General Meeting set for Friday, April 21 would mean a total dividend of $1.75 per share. The total dividend payment in 2021 was $1.55 per share.
The proposed dividend for 2022 would amount to $1.34b compared to $1.19b in 2022.
Samaroo said that in 2022, DDL continued to invest in expansion, improvement and replacement of obsolete equipment. Capital expenditure totaled $2.74b which was funded by the self-generated resources of the Group.
Fifty per cent of the expenditure was in relation to five new projects which began last year and are to be completed this year.
These include the expansion of non-alcoholic beverage production with the addition of a new production line and greater storage for raw materials, finished goods and support services.
Another of the projects is the expansion of the storage bond of the liquor bottling operation. A major drainage enhancement project throughout the Diamond complex is also being executed to prevent flooding.
In May last year, Samaroo pointed out that DDL launched a vanilla flavoured milk and unveiled its orange juice in the 200ml package.
Turning to the country’s future prospects, Samaroo said that “Continued strong growth is expected from the Oil and Gas Sector. Major investments in public infrastructure and the energy sector may enable competitiveness internationally by Guyanese businesses in the non-oil sector”.
The Caricom focus on Regional Food security also opens up new growth opportunities, he said.
He added a caution. “Growth has to be managed. Given Guyana’s relatively small population and the growing demand for skills from all sectors, we foresee major challenges in this area and will continue to place great emphasis on people development in the Group”, Samaroo said.
