DDL to plug Gy$1.4B into 2013 operations

Demerara Distillers Limited (DDL) said it will be investing some Gy$1.4 billion in its 2013 capital programme, which will see upgrades being done to its power generation facility and production equipment, fleet, and storage facilities. This is according to Chairman of the Board of Directors, Yesu Persaud, in the company’s Annual Report 2012, adding that there will also be major investments in expanding its distribution business.

He noted: “As the only producer of Demerara rum, we recognise our responsibility to maintain our unique and historic stills, which are responsible for the unique taste profile of our products, while at the same time investing in modern technologies.”
DDL and its subsidiaries have recorded some Gy$1.3 billion in profit for the financial year 2012, an increase over 2011’s figure. There was a 12 per cent increase in the 2012 profit before tax (after deducting the one-off dividend received from BEV Processors Inc in 2011 which amounted to Gy$288 million).  In the company’s annual report, Persaud said the past year saw the DDL Group’s turnover increasing from Gy$14.6 billion in 2011 to Gy$15.8 billion in 2012. He noted that this success was primarily driven by the company’s achievements in the international market during a period where the world’s economy was recovering from the 2008-2009 economic crises.
Overseas business growing
The company’s overseas subsidiaries performed creditably; however, the ongoing ‘euro crisis’ has impacted its European operations, hence, the profit before tax in that region was Gy$143.7 million compared to Gy$186 million in 2011. On the other hand, there was a profit increase of Gy$1.1 million before tax in the company’s U.S. branch.
Regionally, the St Kitts subsidiary recorded a pretax profit of Gy$22.1 million compared with Gy$13.7 million in 2011, an increase of Gy$8.4 million.
The situation was the same for the local contributors. TOPCO recorded a profit of Gy$16 million compared to a loss of Gy$16.4 million in 2011, while Distribution Services Limited saw a pretax profit of Gy$490 million in 2012, a 12 per cent increase from the previous year. However, the operations of the Demerara Shipping Company Limited was not so fortunate, the company recorded a profit before tax of Gy$146.3 million compared to Gy$159 million in 2011.
In addition, DDL saw the introduction of two new products during 2012. In response to popular demand, the company re-entered the low alcoholic market with the re-introduction of the ‘Five-O’ beverage, a vodka cooler. They also launched a cranberry-flavoured vodka under the ‘Ivanoff’ band.
DDL has been committed to continuous quality improvements and aims to provide only the highest quality products as demanded by customers, and to meet the ever-increasing standards in the international markets.
In 2012, the company undertook several new initiatives to ensure that its human resources remain sufficient and up-to-date. A number of programmes including training, development, and engagement of employees were done. Changes were also made to advance the use of technology in the company. DDL also signed a long-term collective labour agreement with the three unions operating in the company.
“Major emphasis was placed on identifying the ‘competencies’ required, and ensuring that these competencies were developed in our operators. Renewed emphasis is also being placed on re-orienting our employees, to our key core values of quality consciousness and customer orientation,” Persaud said.
DDL, as always, recognised its social responsibilities and have provided services from which scores of persons benefitted. The company provided study assistance (for employees); bursary; and work-study programmes. It also engaged in sponsorship of many sports activities and made donations to several organisation.