DDL’s mid-year profit stands at Gy$804M

Despite sales reduction in one of its biggest markets, the Demerara Distillers Limited and Subsidiaries (DDL) was able to make some Gy$804 million for the first half of the 2014 financial year.

According to the company’s Chairman Komal Samaroo in the Interim Report 2014, DDL’s profit before taxation stood at Gy$1.6 billion, representing 20.11 per cent increase compared to the same period last year when Gy$971 million was recorded.

Samaroo credited the increase to continuous implementation of cost-reduction measures and improved operational margins.

He pointed out that the gross revenue saw a marginal increase as domestic sales grew modestly. Additionally, exports to the North America and the Caribbean also reflected “encouraging growth,” the Chairman said.

However, these positive trends were adversely affected by a decline in European sales, but Samaroo is adamant that the company is poised to regain its lost sales in that market, one of the biggest ones, during the second half of the year.

“We anticipate that economies in the developed countries will continue to improve in 2014 and hope that the local business environment will benefit from political and national consensus on issues which will ultimately advance our economy,” the Chairman stated.

With the company’s continued exemplary performance, Samaroo anticipated this year will be another positive and profitable one for DDL. The company recorded a 19 per cent increase at the end of financial year 2013, with a Gy$1.569 billion profit after tax. Most of the operating entities within the group have registered improvement in their performance during the year. The group’s turnover increased by 11 per cent to Gy$17.5 billion and the profit before tax was increased by 15 per cent from Gy$1.569 billion to Gy$2.205 billion, which reflected improved margins from cost-reduction initiatives and efficiency drives undertaken by management.

There was a 14 per cent increase in profit before tax of Gy$1.462 billion, while turnover recorded an eight per cent increase of Gy$11.5 billion when compared to the previous year.

DDL’s El Dorado Rum continues to be the people’s choice around the world, winning a number of prizes and awards in various spirit competitions.

The El Dorado 8-Year-Old was adjudged the Best Rum and trophy winner in 2013 at the International Wines and Spirits Competition held annually in London.

The El Dorado 21, 15 and 12-Year-Old rums all won gold medals, while the five and three-year-old rums won silver medals. DDL was also named Distiller-of-the-Year for the Americas and the Caribbean.