Despite COVID & supply chain challenges, Banks DIH profit jumps to $6.7B

Local multi billion company Banks DIH recorded a massive jump in profits last year, even as the company grappled with the challenges of the COVID-19 pandemic and supply chain disruptions.

According to the company’s Chairman and Managing Director Clifford Reis, the company earned $6.78 billion in profits after tax for the financial year that ended on September 30, 2021.

Importantly, this was an increase of $1.5 billion- or 28.6 per cent, compared to the amount raked in at the end of the 2020. A total of $5.27 billion was earned as after-tax profits in 2020.

Reis, in his report written as part of the company’s 2021 Annual Report, noted that these increased profits were garnered as a result of an increase in physical sales of products, better use of resources and a higher turnover.

Profits are generated after the company deducts all of its expenses from its revenues (total income), including taxes.

In total, the company managed to rake in $35.8 billion in revenues. This is also a significant increase from the revenues garnered the year before; in 2020, revenues totalled $30.46 billion.

As such, the company managed to generate an additional $5.39 billion in revenue.

Reis noted that the 2021 financial year presented challenges for the company, many of which stemmed from the COVID-19 restrictions and global supply chain challenges. The supply chain challenges resulted in a disruption in the swift procurement of goods and services.

And Reis pointed out, “There were unavoidable increases in the cost of raw and packaging materials, spares and fuels as well as their availability due to the global supply chain issues caused by the COVID-19 pandemic.”

Still, the Chairman said that some of these challenges were addressed with the investments in upgraded machinery to extract better yields from the raw materials used.

The four principal business functions of Banks DIH Limited are the production of beverages, food products, restaurant operations and automotive services.

Meanwhile, at Citizens Bank Guyana Inc., a 51 per cent owned subsidiary, a $200 million increase in revenues was recorded too. Overall, that led to the bank generating $1.05 billion in after-tax profits.

And at Banks Automotive and Services Inc, a 100 per cent owned subsidiary, revenues totalling $57.5 million were generated. This resulted in $2.1 million in profits before tax.