Managing director and chairman of the company, Clifford Reis
Banks DIH Limited has said that it would not be selling any new shares to support its Gy$3 billion investment scheme for the 2011 financial year, as the company would be using money from its cash reserves apart from borrowing from financial institutions.
This was announced by managing director and chairman of the company, Clifford Reis, at the entity’s 55th Annual General Meeting at Thirst Park on Saturday, January 23rd. Reis declared that the company has some Gy$2 billion at its disposal.
Banks DIH Ltd has earmarked some Gy$3.2 billion for capital spending this year. Projects include the purchase and installation of a brand new Krones 1500 BPM PET soft drink plant.
Other capital expenditure for this year include the upgrade and automation of the brewery, which would cost some Gy$95 million; acquisition of additional vehicles to the tune of Gy$154 million; replacement of the carbon dioxide generating plant, which would cost some Gy$98 million; and installation of a new electronic bottle inspector (EBI) and checkmat system for the beer bottling plant.
A waste water treatment plant has also been constructed. This, Reis said, was in accordance with the company’s contractual arrangements with the Coca Cola Company and its own commitment to protect the environment.
Chairman Reis reported that the Coca Cola Company financed half of the expenditures.
He noted that Banks DIH Limited is also obligated to the environment, and has to ensure that the water is cleaned before it is discharged into the river.
In 2009, Banks DIH recorded a pre-tax profit of Gy$2.345 billion. As such, last year’s Gy$3.081 billion pre-tax profit shows an increase of Gy$736.0 million, or 31 per cent over last year’s.
The company’s after-tax profit attributable to shareholders also increased significantly, from Gy$1.286 billion in 2009 to Gy$1.602 billion in 2010, representing an increase of Gy$316.0 million, or 25 per cent, over last year.
Net profit increased from Gy$1.121 billion in 2009 to Gy$1.362 billion in 2010, reflecting a Gy$241.0 million or a 21 per cent increase over last year.
The company is attributing its improved financial performance in 2010 to increases in physical sales by 17 per cent, as well as increases in selling prices, higher export sales, and efficiencies derived from restructuring the company’s operations.
Other factors include an enhanced distribution network with the acquisition of new vehicles for the sales fleet, and increase of Citizens Bank Guyana Inc’s net profit by 37 per cent.
Shareholders and staff members listen keenly to the Chairman's Report
Meanwhile, a final dividend of Gy$0.22 per share, as recommended by the directors in respect of the year ended September 30, 2010, was approved and is now to be paid to shareholders on the company’s register. An interim dividend of Gy$0.14 per share and a second interim dividend of Gy$0.14 per share were confirmed at last Saturday’s AGM. A resolution was also passed for remuneration of Gy$554,463 per annum to be paid to the non-executive vice chairman, and Gy$461,073 per annum be paid to each non- executive director, and that a travelling allowance for each non-executive director be fixed at Gy$62,200 per annum; and that the additional sum of Gy$46,521 per annum be provided for additional remuneration for each director serving on a technical committee.
Employees were awarded for serving the company for 20 and 25 years. Among those receiving awards were Sherry Martins, Marcia Adams, Yvonne Yearwood, Parmanand Mootoo, Oral Jones, Desmond Persaud, Fazeel Hussain, George Seecharan, Clive Burnett, Rawle Perreira, Orin Sandy, Marlyn Oudkirk, Oswald De John, Andy Peters, Daniel Haynes, Lirraine George, Steve Vigilance and Collette Layne.
