Dear shareholders, it gives me great pleasure to report on the results achieved by the Banks DIH Ltd Group for the period ended 30 September
Revenue and Profits
The Group’s third party revenue was $32.917 billion compared to $30.518 billion in 2018 representing an increase of $2.399 billion or 7.9%. The Trading Profit from Operations for the Group was $7.529 billion when compared with $6.837 billion achieved in 2018, representing an increase of $692.0 million or 10.1%.
Profit after Tax attributable to the Shareholders of the parent was $4.897 billion compared to $4.286 billion in 2018, an increase of $611.0 million or 14.3%.
The Group’s Net Asset Value per share increased from $40.15 to $45.25 by 12.7%. The Board of Directors of the Company has recommended a dividend proposal of $1.16 per share unit resulting in an overall cost of $985.8 million.
Revenue generated by the Company was $29.597 billion compared to $27.458 billion in 2018, an increase of $2.139 billion or 7.8%.
The Profit before Tax for the Company was $6.167 billion compared to $6.032 billion, while the Profit after Tax for the Company increased from $4.085 billion to $4.524 billion by $439.0 million or 10.7%.
My Fellow Shareholders, the improved results were derived principally from the increases in physical sales of our core products sold both in the Domestic and Export Markets. For the greater part of the year just ended, we were challenged to adjust to the impact which rising fuel prices had on the Company’s revenue streams. This challenge among others required prudent management of our financial and human resources.
Investments in Capital Equipment continued within the period just ended. We completed the installation of increased storage capacity for potable water and equipment to accommodate increased production for Ice Cream Products and new flavours of Frostee Products. The Trisco modernisation project continued with the installation of new packaging equipment to produce new and exciting packages for Biscuits which included the Midwest range of Biscuits and Cookies and Whole Wheat Crackers. Our Security System was enhanced by way of the installation of additional night vision cameras. Our Sales & Merchandising functions were augmented with the installation of additional freezers, beverage coolers and water dispensers. Our measured transition to the use of Solar Energy was continued at our Qik Serv Restaurants which resulted in reduced Energy Charges.
Our Capital Expenditure focus for Financial Year 2020 will be primarily on Capital Equipment for the Beer Bottling Plant which encompasses the procurement and installation of an uncaser, a case packer, conveyors and a labeller. Additional aspects of the Capital Expenditure will include the purchase of trucks and lift trucks to further the selling and distribution activities and expenditure related to the construction of the new multi-level vehicle parking facility and “Banks Automotive & Services Inc” to be located at Demerara Park.
Citizens Bank Guyana Inc
The revenue of Citizens Bank Guyana Inc, a 51% owned subsidiary of the company was $3.422 billion compared with $3.160 billion generated in 2018, an increase of $262.0 million or 8.3%. The profit before tax was $1.599 billion compared to $1.009 billion in 2018, an increase of $590.0 million or 58.5%. Profit after tax was $955.3 million compared to $602.3 million, an increase of $353.0 million or 58.6%.
Net Interest Income was $2.990 billion.
The earnings per share was $16.06, while the total asset base was $54.9 billion.
Loan Assets were increased from $25.5 billion to $29.8 billion reflecting an increase of 16.9% or $4.3 billion.
The Board of Directors declared a first interim dividend of $0.30 per share unit which was paid on 17 May 2019. A second interim dividend of $0.30 per share was also paid on 25 October 2019, and now the Board recommends a final dividend of $0.56 per share unit, making the overall dividend per share unit of $1.16 or an overall cost of $985.8 million.
Growth in Shareholders’ Value
My fellow shareholders, creating and sustaining successful growth has been at the core of our operations. Despite the competitive environment in which we conduct business, management continues to focus on developing and innovating new business initiatives that produce long term growth.
From the Net Profit of $4.897 billion attributable to Shareholders, a dividend payment of $951.8 million was made, leaving the sum of $3.945 billion which was transferred to Retained Earnings. The Shareholders’ Net Asset Value per share is now $45.25 per share when compared with the 2018 value of $40.15 per share.
Total Quality Management and Environment Safety Functions
My fellow shareholders, I can report with a deep sense of appreciation for the efforts and commitment of our Quality Management and Environmental and Safety Team members that we successfully completed the following compliance and recertification audit:
- - ISO 14001:2015 Environmental Management System & OHSAS18001:2007
External Audits completed (October 2018 – September 2019).
- - Quality Management System ISO 9001:2015
- - ISO 22000:2005 – Food Safety Management System
- - ISO/TS22002-1:2009 Prerequisite Programmes on Food Safety
- - ISO/TS22002-4:2013 Prerequisite Programmes on Packaging
Manufacturing for our NR PET Manufacturing
- - FSSC 22000:2014 Food Safety System Certification and its transition to new version FSSC version 4.1.
- - Two (2) US Army Sanitation (Food Safety) Audits.
- - US FDA Food Safety Audit
- - ISO 22000:2005 and FSSC version 4.1 unannounced Food Safety Audit.
External Audits completed thus far for fiscal year (October 2019 – September 2020)
- - Quality Management System ISO 9001:2015
Additionally, my fellow shareholders I can report with a sense of accomplishment that our company at the end of our reporting period, was ranked on the Diageo League of Excellence second place in the Americas and 17th place worldwide for quality of product and packaging for Guinness stout.
My Fellow Shareholders in keeping with our Company’s Mission Statement, our working relationships within the Communities which we operate, continued to be mutually beneficial. The Company has not only been engaging in the sponsoring of Brand Ambassadors Sports Activities, Religious Events, Bursary Awards, Apprenticeship/Work Study Programmes and Academic Scholarships, but also the Company has made commitments to the Community as part of its business strategy. The Bottle Cooler/Freezer/Water Dispensers’ Programme has cemented and extended Customer Relations consequently making our Company a Supplier of choice for quality products and service.
My Fellow Shareholders, the Company’s strong production and distribution capabilities along with its Financial Resource Management have enabled us to complete another successful financial year.
Optimistic Economic Outlook is envisioned with the arrival of ‘first oil’. We continue to examine our core competencies to respond to new opportunities that may be available which can be incorporated into our business models.
I will acknowledge the expertise and counsel that the Board of Directors contributed to the progress of the Company throughout the year as well as that of our leadership team and employees. Importantly on behalf of the Board, I would like to express our gratitude to our valued Shareholders, Suppliers, Employees and Customers.