DEMTOCO profits up by 13% as company rakes in $1.6B between Jan – June 2021
Demerara Tobacco Company Limited (DEMTOCO) has recorded a profit before taxation of $1.6 billion for the six-month of 2021 ending June 30. This represents an increase of 13% over the corresponding period in 2020, the company announced on Thursday.
According to Chairman Kathryn Abdulla, gross profit for the period was recorded at $2.06 billion, which reflects an increase of 9.53% over 2020. Administration, distribution and marketing expenses totalling $459 million represented a 1.5% decrease over the same period in 2020, largely on account of rationalizing expenditure and efficiencies achieved.
Abdulla said the performance for the first half of the year is commendable given that Guyana, like the rest of the world, continues to grapple with the global pandemic and the return to normalcy has been slower than previously projected.
“Despite the continuing challenges brought about by the global pandemic, it is worth noting that optimism in Guyana, regarding growth projections linked to the oil and gas sector is trickling down to the business community. DEMTOCO has meanwhile implemented innovative strategies geared toward embracing this ever-changing environment. This is evident in our financial performance for 2021,” Adbdulla said in a statement.
Meanwhile, the Managing Director, Vijay Singh, said the company continues to note with concern the growing incidence of illicit cigarettes in the country pointing out that increasing rates of illicit trade only serve to undermine government revenue.
“DEMTOCO’S volumes also grew by 2% vs same period last year. This was driven by strong relationships with our customers, retailers and consumers.
“Despite this, we continue to note with concern the growing incidence of illicit cigarettes in the country. These increasing rates of illicit trade only serve to undermine Government Revenue. Meanwhile, Enforcement is still required on the legal products which do not comply with the packaging and labelling requirements. We, therefore, persist in petitioning all authorities to actively enforce the laws to ensure that there is full compliance across the entire tobacco industry in Guyana. We look forward to a continued collaborative effort with the authorities in this regard,” Singh said in brief comments.
As a consequence, the Board of Directors has approved the payment of a second interim dividend of $22.60 per ordinary share payable to shareholders of record at the close of business on August 16, 2021 The Register of Shareholders will be closed from August 17 to 19 for the processing of transfers.