Banks DIH records $4.2B after-tax profit
Banks DIH Limited registered a $4.243 billion after-tax profit for 2017. This is against the after tax-profit of $4.702 billion garnered in 2016, according to the company’s Annual Financial Report.This result was produced because the company’s trading profit rose in 2017 by 22.3% over the previous year’s, although after-tax profit fell by 9.76% over the period, because of a one-off gain in 2016.Chairman and Managing Director of Banks DIH Limited, Clifford ReisThe report, presented by Banks Chairman and Managing Director Clifford Reis, stated that, in the prior year, the company benefited from the one-off gain of $1.4 billion accrued as a result of the disposal of the investment securities held in Banks Holdings Ltd and Desnoes and Geddes (Jamaica) Ltd, and because of the dissolution of BCL (Barbados) Ltd.The group’s net assets value per share has increased from $31.72 to $33.33, and the company has increased its dividend proposal to shareholders to $1.04 per share unit, resulting in an overall cost of $884 million.“The improved results were made possible as a result of the increase in sales of our malt products, aerated and liquor beverages, and food products,” the Chairman noted in the 2017 Annual Report.Reis said the company also benefited from the reduction in prices paid for several key raw and packaging materials, which included sugar and pre-forms.“Prudent management of our asset base and financial resources also contributed to the overall results,” he added.Stating that the global economy had experienced some shock as a result of the general elections in the US, he said there were marginal improvements resulting from the increase in commodity and oil prices.The Banks Chairman and Managing Director also stated in his report that the implementation of the Environmental Levy of $10 per container on all non-returnable glass and PET containers had helped to reduce consumer spending, which ultimately affected retail sales.In addition to that, Reis said, the company weathered the effects of an artificial increase in foreign exchange rates, which affected the acquisition costs for raw and packaging materials, plant and machinery spares, and capital equipment; in addition to foreign exchange and payment for goods and services.Reis noted that the distribution warehouse was extended by an additional 15,900 square feet of new storage space; a new malt intake system was installed in the brewery; and the beer bottling plant benefited from the installation of a crate washer and a new cleaver brook boiler. Modernisation of the Trisco cookies and crackers lines was continued with the acquisition of new packaging equipment.Citizen’s BankTouching on the performance of Citizen’s Bank, the Chairman stated that revenue was $3.5 billion, compared to $3.2 billion, an increase of $287 million, or 8.8 per cent. Profit after tax was $727 million.Reis said that from a net profit of $3.8 billion, a dividend payment of $802 million was made, leaving $3 billion for transfer to retained earnings.He noted that the company performed well in 2017, but the uncertain global and local economic environments, together with the effects of changing global weather patterns, are factors which would adversely affect the company.“We continue to examine areas in which we can diversify our business portfolio,” the Chairman added.Meanwhile, the company also announced that its AGM will be held at Thirst Park on Saturday, January 27. At the AGM, shareholders will receive the financial statements for the year ended September 30, 2017, and the reports of the directors and auditors, among other activities.