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My fellow shareholders, it gives me great pleasure to present my report on the Company’s performance for the period ended 30 September 2014 and to advise on the results achieved for the period under review.

Fellow shareholders, the recently concluded financial year was challenging in many respects but as a result of prudent decision-making and the implementation of cost saving measures, and strict financial controls, we have produced a result which even though down on the previous year’s results, can be considered as acceptable Fellow shareholders, even though the economic data suggests that the global financial situation may be recovering in some areas, uncertainty and fear have now taken their place on the agenda of legitimate concerns which are affecting economic results across the globe and locally. Banks DIH Limited was not exempt from that reality and the effects of the global recession resulting in the financial tsunami which in turn resulted in the virtual collapse of the global financial markets.

My fellow shareholders, the end of a year whether a financial year end or a calendar year, can be a time of uncertainty depending on one’s outlook or geographical location. So as we contemplate the uncertainty before us, should we look backward and celebrate the high points and achievements of the year, or should we look to the future while attempting to second guess the decision makers who influence the nation’s successes or failures? My fellow shareholders, 2014 will stand out as an exceptionally challenging period. During the period, we witnessed a dramatic increase in security concerns across the globe which had their origins in the continuing destructive wars across the Middle East which negatively impacted oil prices during the first half of the year. Global fears over the spread of the Ebola pandemic from Liberia and surrounding countries, started to spread to other parts of the globe which were ill prepared to deal with this epidemic, and tried to calm the fears of citizens. The Ebola situation only served to reinforce the understanding that as a result of increased air travel and more open forms of international movement of humans, fragile economies such as ours, can be impacted in frighteningly negative ways. Closer to home, of the issues which negatively impacted the economic performance of Companies such as ours, the crime situation was probably at the top of the list. As citizens and consumers learned once again to deal with the realities of fear and uncertainty, spending contracted which impacted the Income Statements of most businesses. Fellow shareholders, also on the list of issues which negatively impacted the business environment was the weather and its concomitant affects. Not so much the fact that it rained which we understand and accept as part of the climatic reality in this part of the world but rather the flooding of parts of the city and its environs which occurred after relatively short period of rainfall. In this age of the 21st Century with the available science and technology, that our capital city should experience flooding after a relatively short period of rain is unacceptable. The lives of too many families and businesses continue to be affected not only in terms of the damage caused to the physical infrastructure but the unnecessary financial losses as well. Surely this continuing problem can be fixed permanently to the benefit of the nation and its citizens.

My fellow shareholders, there has been a question which continues to be asked within our Company over the many years of our existence, and that is, has there been any particular circumstance, or event or individual to which can be attributed the reason for our existence over the past fifty-nine years since the merging of Banks Breweries Ltd and D’Aguiar Bros Limited? The opening of Charles Dickens historical novel “A Tale of Two Cities” is instructive.

“It was the best of times and it was the worst of times. It was the age of wisdom; it was the age of foolishness. It was the epoch of belief; it was the epoch of incredulity. It was the season of Light; it was the Season of Darkness. It was the spring of Hope; it was the Winter of Despair. We had everything before us, we had nothing before us”.

Even though there is no intention to draw comparisons between the French Revolution and the growth and development of Banks DIH Limited, the contrasting situations of hope and despair serve to highlight the roller coaster of high and low periods which have marked our evolution to this stage. As we reflect on the events which have come together to form our Company’s history, the one thing which stands out as being critical to our growth and success, will be the relationships we have formed and have been able to sustain over the years of our existence. Since humans are social beings, collaborative efforts or partnerships between individuals, businesses, organisations with similar interests, institutions and governments or a varied combination thereof, have always been and remain a part of the human experience. A partnership can be compared in many respects to a game of cricket in which batsmen always construct their innings with a determination to achieve a desired result. That partnership is constructed on a few key elements or conditions:-

  • strategies to build and continue an effective partnership
  • recognition that time and effort will be required over the duration of the partnership
  • that the partnership is not static and that it can take different forms, but with the intention that it is mutually beneficial, effective and rewarding
  • that trust will be the benchmark by which the partnership is measured for effectiveness
  • that a sense of interdependence will characterise the interactions over the lifetime of the partnership

Those elements are also critical to an effective business partnership.

Since that time when our late Chairman made the decision to take his idea of a brewery to everyday Guyanese to convince them of the wisdom which was driving his vision, and asking for their support, our understanding of the meaning of success has taken root within that appreciation for the need for involvement and the creation of a participative environment. Our history reminds us that the first venture into the concept of a partnership, was with the citizens of the then British Guiana. It was a courageous decision taken by the then Chairman, which bore fruit. We have since, over the past fifty-nine years, entered into several other partnerships which had redounded to the benefit of our Company and our various contracting partners.

Over the centuries which have witnessed the evolution of humankind into what we are in this 21st century, the evolution has been predicated on the notion that our continued existence requires an understanding that we need each other to ensure survival. The events of history clearly indicate that not all of humankind across the ages, subscribe to that view. Our Company in spite of that human failing, has held firm to the view that we need and can learn from each other.

We have referred on many previous occasions to the relationships we continue to enjoy with our shareholders, employees, customers, suppliers and regulators. We wish to record the valued relationships we have also developed and sustained over the years with our franchise partners to whom we owe a debt of gratitude. Those relationships have added value to all of what we do on a daily basis within our Company. When reference is made to franchised relationships within the business arena, the predominant consideration is the financial benefits which would have accrued to either party, and in the instance of our Company, we note the continuing partnerships we enjoy with the Coca Cola Company, Brand owners of Coca Cola, Sprite and Minute Maid Brands; Diageo, Brand owners of the Guinness Brand; Royal Unibrew, Brand owners of the Vita Malt Brand and Banks Holdings Limited, Brand owners of the Pinehill range of products. When we reflect on the value chain, and the benefits brought to our operations, we have an appreciation for the major improvements which exposure to new and evolving sales and marketing strategies, packaging improvements, product quality management, warehousing and distribution strategies and environmental management techniques, have brought to our operations. Our Company’s operations without exception have all benefited in many different ways from these respective partnerships.

Our Company’s theme for the new financial year “Refreshing Partnerships” speaks eloquently to the ethos of those relationships over the period of their existence and to our hope for the future that they will be sustained to our mutual benefit.


Fellow shareholders, the recently concluded financial year was challenging for our Nation in many respects, and Banks DIH Limited was not exempt from that reality.


The Group’s third party revenues were $26.5 billion, an increase of $47.5 million over that achieved in the previous year.


The Group achieved an operational profit before tax of $4.971 billion, while profit after tax attributable to shareholders was $2.660 billion.

The company’s operating profit before tax was $3.473 billion, and profit after tax was $2.265 billion as compared to profits before tax of $3.855 billion and profit after tax of $2.538 billion respectively achieved in 2013.

My fellow shareholders, I previously alluded to the global economic and financial data which suggest that there may be recovery in some areas. There is still fear and uncertainty that continue to permeate the economic and social fabric of nations, and corresponding contribution which continues to affect the financial results of companies such as ours.

Despite these influences, the results of the company were made possible by the Customer Service/Distribution Network capability.

Our quality products are made available to our consumers throughout the country by way of our fleet of modern international trucks and a network of wholesale and distribution partners and retailers making our routes to market channels the largest in Guyana. The established pre-sell system has become more efficient through the maximisation of our warehousing functions, the effective scheduling of our distribution fleet of trucks and the optimisation of delivery of product range to our customers.

The number of units sold was 15,500,991 compared to 15,556,259 units sold in the financial year, a reduction of 55,268 units or 0.4%.

GT Beer has met all the expectations of the company. It was budgeted to do 330,500 cases but actually sold 461,688 cases, an increase over the budget by 131,188 cases or 40%.

Demico House sales were $2,114 billion compared to $2.162 billion in 2013. Demico House has endured the vendors and other threats to the business outside the Stabroek area.

Major refurbishing works have been started in 2014 to enhance the overall customer experience. Works are being done at the Restaurants, Hotel and Laundry sections. The Main Street Qik Serv, in particular, has had a transformation into a more contemporary, American Styled Ice Cream experience, and will offer items on the menu such as the very popular “Big Train” Iced Coffee, Milk Shakes, Love Boat and Banana Split Ice Cream products.

Cost of Goods Produced

The cost of raw materials used in the manufacturing process was $7.43 billion compared to $6.845 billion, an increase of $568 million. This increase was due to the increase in the cost of purchase of key raw materials, in particular the cost of GT beer bottles, which is why we are encouraging you to return these bottles. This is an opportunity for you to make some money - $200 per case.


Depreciation charges increased by $242 million, from $1.619 billion to $1.861 billion. This depreciation charge is in keeping with the capital expansion and modernisation of the company’s manufacturing facilities.

It should be noted that this is a non-cash flow charge and is spreading the cost of the assets over its useful economic life.

Other Operating Expenses

The other operating expenses decreased by $701 million, from $5.350 billion to $4.649 billion. This was due mainly from the efficiencies derived from the use of the new equipment and technologies in the conversion of raw materials into finished products.

Capital Expenditure

During the year the company spent $2.487 billion on Capital works.

The company continued its policy decision to replace and/or up-grade its production capacity through the installation of state of the art manufacturing plant and machinery that enhance its core competencies which will result in long term competitive advantage with regards to the conversion of raw materials into quality fresh, finished products. During the financial year we were able to complete the Brewery and Cellars modernisation programme and the commissioning of the palletiser/de-palletiser as well as a new pasteuriser for the Beer Plant.

Other projects that were started in the previous financial year and are now completed include the commissioning of a new 1.7MW Hyundai electrical power generating set, an 800 HP Cleaver Brooks boiler, a Co2 Recovery and Storage systems and High Pressure Air Compressor. Our restaurant production capacity was enhanced through the acquisition of additional restaurant equipment and our distribution and warehousing capacity were improved with the purchase of additional trucks and forklifts.

In the new financial year, major capital expenditure will focus on the acquisition and installation of a new Trisco biscuit oven, an on-line blow moulder for the Water Plant, the construction of a new Vehicle Workshop, the completion of Crème Select Ice Cream Outlet and further replacement of trucks and forklifts.

Capital Commitment

The company’s spending for capital works authorised for 2015 is $$3.910 billion, of which $550 million is authorised and contracted for.

Working Capital

The Company has a strong working capital base where its current assets are 2.47 times its current liabilities.

Cash Resources

As at September 30, 2014 the company had cash resources of $2,274 billion which is $253 million more than the previous year. The cash flows reflect the strength of the Company. During the year $2.5 billion was used in our investment on Capital Expenditure programmes. The Company has adequate financial resources to support its short and long term capital commitments.

Intra Group Loan

Banks DIH Limited as at 30 September 2014 had an outstanding loan of $643.2 million owing to its subsidiary, Citizens Bank Inc., which was executed on commercial terms.

Citizens Bank Guyana Inc.

Citizens Bank Guyana Inc., a 51% owned subsidiary of the company increased its revenue from $3.010 billion to $3.217 billion by $207.0 million or 7%. Profit after tax was $989.1 million compared to $1.004 billion in 2013.

The Total Assets increased from $40.7 billion to $42.1 billion by $1.4 billion or 3%. Loan Assets increased by 22% over the previous year by $5.2 billion from $23.7 billion to $28.9 billion. Customers’ Deposits declined from $34.2 billion to $33.2 billion by $1.0 billion. Earnings per share is now $16.63 and Net Interest Income increased from $2.15 billion in 2013 to $2.37 billion in 2014.


The Board of Directors declared a first interim dividend of $0.17 per share which was paid on 27 May 2014, a second interim dividend of $0.17 per share which was paid on 21 October 2014 and now recommends a final dividend of $0.30 per share unit with the overall cost being $640.0 million. Dividends received from Banks Holdings Ltd, Barbados for the year were $31.0 million and dividends paid to Banks Holdings Ltd, Barbados were $128.1 million based on investments made with each other.

Growth in Shareholder’s Value

The company continues to strengthen its capital base. From the profits of $2.265 billion, a dividend payment proposed is $640.0 million leaving the amount of $1.625 billion transferred to Retained Earnings, bringing the total Shareholders’ Equity to $23.202 billion compared to $21.549 billion in 2013, an increase of 8%.

Net Asset per Share

Shareholders’ Equity $23.2 billion
Issued Share Capital 1,000 million shares
Each Share is valued $23.2


There seems to be some institutions who are who trying their best to reduce the value of Banks DIH Limited shares. Fellow shareholders, your share value at 30 September 2014 is $23.20 and not $19.50, $19.80, $19.90 or $20.00.

Social Accounting

Fellow shareholders, I would like to refer to page 94 of the Annual Report captioned ‘Social Distribution of Gross Income’.

The net amount remaining was distributed as follows (after Revenue less Raw Materials and Operating expenses):

To Employees 20% $3.012 billion
To Government 48% $7.089 billion
To Future Development of the company 27% $3.998 billion
To Shareholders 4% $640 million
To Public Causes 1% $14.8 million


The taxes paid less VAT taxes amount to $5.256 billion or $14.5 million per day, including Saturdays, Sundays and holidays.

This amount in taxes is equal to 4% of the total taxes collected by the Guyana Revenue Authority - $132 billion in 2014. One Company, Banks DIH Limited, the “Cash Cow” of the Private Sector.

The time is now to level the playing field for the Excise Tax calculation on alcoholic beverage in accordance with the Excise Tax Act which states: taxable goods imported and not warehoused; taxable goods imported and warehoused and removed from the warehouse; taxable goods manufactured in Guyana and removed from the warehouse; taxable goods manufactured and sold in Guyana.

The time is now to go after the smugglers and illegal importers of alcoholic beverages.

The time is now to remove the VAT Tax on Registered Fast Food Restaurants because it is somewhat difficult to compete with the food vendors in the street. We must remember that the Fast Food Business is for the working class.

We have talked enough fellow shareholders. What we want is action NOW, not tomorrow, next week or next month, but NOW in this year’s Budget presentation.

Balance Sheet Data

Fellow shareholders with reference to page 93 of the Annual Report, Balance sheet Data:-

  1. The Working Capital has increased to $5.3 billion
  2. The net Property, Plant and Equipment has increased from $10.5 billion in 2010 to $19.3 billion in 2014, with a loan balance of $685 million as at 30 September 2014.
  3. Shareholders’ Equity has increased from $16.1 billion in 2010 to $23.2 billion in 2014. In actual fact your share value has increased from $16.03 to $23.20 ($7.17 or 44.7%).
  4. Assets increased from $19.8 billion to $31.1 billion.

We are proud of our performance, fellow shareholders.

Restatement of Financial Statement

The financial statements are prepared in accordance with International Financial
Reporting Standards and which requires the company to adopt any relevant changes to these standards. Developments related to these standards are closely monitored, and financial disclosures are provided in accordance with international best practices.

For the year the Amendment to IAS 16 – Property, Plant and Equipment, required that spares that meet the definition of Property, Plant and Equipment should be recognised as such, rather than Inventory as noted on page 36.

The impact of this Amendment is disclosed in note 33 of the Financial Statements and is the reason for the Restatement of the Financial Statements in the prior year.


My fellow shareholders, distinguished guests, ladies and gentlemen, I do believe that woven into the fabric of the DNA of humanity is the understanding that we were not meant to live apart from one another. The concept of a common humanity in spite of those differences which religion, political affiliations, race, ethnicity and geography have introduced into the business of life and living, still stands as the ideal to which humankind should aspire. That we need each other to be able to live in harmony and peace and to live productive and useful lives, there should be no doubt. My fellow shareholders, as attractive and compelling this ideal vision of humanity is, the attainment of this goal continues to elude us. And why is this so? For the reason fellow shareholders, that for some persons, the concept of partnerships and meaningful and constructive relationships has never been a part of their understanding of how life should be lived. My fellow shareholders, when a decision is taken by any individual company, nation or group of persons to go it alone, then the painful reality will be that the road ahead will be difficult and hard. As we reflect on the road ahead of us, what then will the remainder of 2015 hold in store for us?

We propose to complete the modernisation of the Brewery and Beer Bottling Plant with the installation of a new Krones Filler which will ensure that the bottling of our Malt products is completed within the required efficiencies and the minimum of interruptions which Plants such as ours experience when multiple packaging sizes are filled on any one day.

The new Oven for the baking of Cookies and crackers will be installed within the second quarter. This acquisition will resolve the inefficiencies and cost over-runs currently experienced in the production of biscuits which is a result of obsolete equipment.

Our Bottled Water operations will be further upgraded with the installation of in-line Blowing Equipment for the PET bottles used in the production of our Tropical Mist, Aqua Mist and Rain Forest Brands of water. The inefficiencies associated with the present system of moving blown bottles from the Soft Drink Plant to the Water Plant will be eliminated. The production of the institutional sizes: 5 gln and 3 gln of Tropical Mist, will be improved with the refurbishing of the Plant used in the production of those sizes.

It is proposed to relocate the operations of the Vehicle Workshop to the new Workshop to be built within the Caribanks Compound. The existing space will be incorporated into the Thirst Park Stores which requires additional storage.

With the installation of the new technical training facility at Thirst Park, which was completed with the kind assistance of Krones Company out of Germany, it is proposed to enhance the technical skills of our Engineering Staff and Plant operatives by way of on-line training and tutorials which will be web based.

We propose in keeping with our 2015 theme, to further strengthen the relationships we enjoy with our dealers and customers by way of more interactive visits to our Thirst Park operations where they can see in real time what our production facilities are engaged in and to speak with our Production and Administrative staff.

We also propose in this year, to complete the refurbishment of our Demico House operations. The restoration of the fabric of Stabroek Property in addition to the upgrade of the customer areas and kitchen facilities will further strengthen the relationhips we enjoy with the members of the public who visit and support our restaurants.

We will continue in this year, the programme which was started in the 2012-2013 financial year to prudently manage our finances and to enhance cost savings by reducing waste and eliminating inefficiencies.

My fellow shareholders, as you are undoubtedly aware from the reports in the media that the price per barrel for oil has reduced dramatically. Recent comments from Oil Industry Executives and Financiers suggest that the price per barrel may well reach the $40.00 mark. We have already started to experience reductions for items such as Preforms which are petroleum derived. We await expectantly to see meaningful reduction in price at the pumps for fuel purchased for our transport fleet and power generation.

My fellow shareholders, earlier on we alluded to the fact that fear and uncertainty had taken their place on the list of legitimate concerns affecting the economic results of nations and companies either directly or indirectly. Our vision for 2015 even though we remain upbeat and plan for the future, is tempered by the uncertainties which past experiences have said to us accompany national Elections. These uncertainties when combined with those which can negatively impact certain sectors of the economy such as sugar and rice markets, say to us that prudence and some caution will have to guide our decision-making and activities in 2015.

My fellow shareholders, ladies and gentlemen, by now you must have taken note from our Annual Report that the theme for financial year 2015 which will inform and guide our respective conversations and decision making during 2015 will be “Refreshing Partnerships”. My fellow shareholders, it has been a clearly established fact garnered over many centuries of observation and documentation that relationships are kept alive through commitment, maintaining mutual interest, and concern which is visibly demonstrated. Our theme for 2015 speaks in a twofold way of the above stated facts with one interpretation being our celebration of an existing understanding that we do enjoy “Refreshing Partnerships” with our Franchise Partners and the other being our intention in 2015, to sustain and to keep alive those partnerships by way of constantly renewing and refreshing them.

My fellow shareholders, ladies and gentlemen, in as much as we recognise and appreciate that our company’s future success can be influenced by the actions and decisions of others, we also recognise and understand that we need to play an active role in ensuring that our vision of the future we dream of and speak of is realised. This can be achieved through our commitment to that ideal of refreshing the partnerships we maintain with our Employees, our Dealers and Customers, our Bottling and Franchise Partners and the wider Society. These relationships are sensitive experiences which should not be taken for granted. It will be within the best interests of our company and all who have a relationship with it, that the Partnerships and Relationships of which we speak are sustained. My fellow shaeholders, there are indicators that the current year 2015 will be as challenging as the just concluded financial year. Ours is not the option to give in and give up. We focused on the re-capitalisation of the company during 2014 to make it ready and prepared to utilise every opportunity which is presented to grow value for our respective stakeholders. The future beckons and we, if we are to be faithful to our responsibilities have no other option than to respond. We can do this by being true to that understanding that we were not meant to exist apart from one another. Faithfulness to our partnerships and relationships will achieve the success we desire.

My fellow shareholders, guests, ladies and gentlemen, permit me on behalf of the Board of Directors and Employees of Banks DIH Limited to extend to you all, your families and loved ones, a Peaceful, Healthy and Productive 2015. It is my desire that you find within this year ahead, fulfilment, satisfaction and contentment.

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