Banks DIH records over $600M increase in after tax profits
Banks DIH Limited Group has significantly improved its income for 2019, recording an increase of more than $611 million in after-tax profits.
The announcement was made by Managing Director of the group of companies, and Chairman of the Board, Clifford Reis, in the Group’s 2019 financial report.
The report, titled ‘A Bridge to the Future,’ was released to shareholders on Monday.
The increase in net profits after tax from $4.2B in 2018 to $4.8B this year represents a more than 14 per cent increase.
The report also highlighted that third party revenue for this year was $32.9B compared to $30.5B in 2018, and this represented an increase of $2.3B or 7.7 per cent. The Group’s Net Asset Value per share also increased from $40.14 to $45.25, and a dividend payment of $951M was made from the $4.8B Net Profit.
According to the Managing Director, this improved performance is credited to the increase in physical sales of core products sold both in the domestic and export markets.
To support increased sales, he pointed to the installation of increased storage capacity of potable water and equipment which accommodated increased production for the Ice Cream products and new flavours of Frostee Products.
The report from the other Directors also revealed that the Trisco Modernization Project continued in 2019 with the installation of new state of the art packaging equipment thereby enabling greater variety and attractiveness. Qik Serve Restaurants, which are also owned by Banks, were also fitted with new rotisserie ovens and high-pressure fryers and mixers – all of which helped to boost income.
Additionally, security systems were installed with night vision cameras, as well as the installation of additional freezers, beverage coolers and water dispensers.
The Directors’ report also highlights the measured transition by Banks to the use of solar energy at the Qik Serv restaurants, which they said brought the cost down.
But even though the year was a highlight successful one for the Group, the Managing Director noted that it was not without its challenges.
“For the greater part of the year just ended, we were challenged to adjust to the impact which rising fuel prices had on the company’s revenue stream,” he shared with shareholders.
Reid was keen to note however that these challenges necessitated prudent management of financial and human resources for 2019.
For 2020, he said similar capital investments will be made for the beer bottling plant and this encompasses the procurement and installation of an uncaser, a case packer, conveyors, and a labeller.
He added that expenditure will also go towards the purchase of trucks and lift trucks to further the selling and distribution activities, and investments in the construction of a new multi-level vehicle parking facility and ‘Banks Automotive & Services Inc.’ which will be located at Demerara Park.
Meanwhile, the revenue of Citizens Bank – a 51% owned subsidiary of Banks DIH – was $3.4B compared to $3.1B in 2018; an increase of $262M or 8.3%.
The report revealed that profit before tax was $1.5B compared to $1B in 2018; an increase of $590M or 58.5%. Similarly, the after tax profit increased by 58.6% – from $602M in 2018 to $955M this year.