The Demerara Distillers Limited (DDL) Group has recorded a Profit After Taxation of $2 billion in its mid-year report for the period ending June 2023.
Chairman of the local beverage giant, Komal Samaroo commenting on the 2023 Interim Report, said the taxed profit represents an increase of 11.1 per cent when compared to the $1.8 billion recorded during the corresponding period in 2022.
Revenue for the year was $15.72 billion compared to $14.17 billion recorded in the interim period last year – reflecting an increase of approximately 11 per cent. According to the Chairman, this improvement was attributed to an increase in the Group’s domestic revenue by 15 per cent, while revenue from the international market increased by 5 per cent.
Profit before Taxation for the period was $2.71 billion compared to $2.44 billion recorded in the previous year, also representing an increase of 11.1 per cent.
In his report as Chairman, Samaroo said the international economic situation this year still remains uncertain. He pointed out that the war in Ukraine continues unabated with its concomitant negative effects of price escalation on food and energy supplies. European economies, he added, continue to experience high inflation resulting in increasing interest rates, as central banks struggle to rein in such economies.
While shipping costs have somewhat improved, the DDL Chairman said input costs in his company’s production processes remain high and supply chains are yet to regain normalcy.
Additionally, Samaroo noted that the effects of global warming are being felt worldwide. In recent months, record high temperatures in several parts of the word have caused major fires – resulting in persons having to abandon their homes. In other parts of the world, unusually heavy rainfall has caused catastrophic floods – disrupting millions of lives.
The Chairman posited that the influence of global warming in the world must now be a central economic consideration.
“These circumstances have had the effect of slowing the rate of growth of our sales in the European and North American markets. Both are key markets for our branded as well as bulk alcohol products. Export sales in the first half of this year achieved marginal increase compared to the same period last year,” the DDL Chair detailed in his half-year report.
Nevertheless, Samaroo remains hopeful that international markets will improve in the second half of this year as the Group continues to work to maximise all opportunities within its control.
During this reporting period, the DDL Chairman outlined that implementation of several major projects continued, while several others are at the planning stage.
“The impact of these projects will be beneficial on the Group’s results in future years,” he stated.
Samaroo also used the opportunity to recognise the ongoing commitment of staff and commend their hard work which contributed to these results. He also expressed gratitude to the Board of Directors for their continued support, advice and guidance.
For the 2022 financial year, the DDL Group recorded a total after-tax profit of $5.3 billion, alongside a turnover of $31.4 billion – results that came despite global crises, the ramifications of which were felt even in Guyana.
Back in March of this year, DDL signed a US$22 million loan with the International Development Bank (IDB) investment arm. Samaroo had noted the need for the Group to commit more resources to its working capital at a time when it plans to step up the pace of expansion.
“Based on projects currently at various stages of implementation and planning, across the Group, we estimate over the next three years to commit in excess of US$100 million for capital projects. The loan agreement will provide the resources required to fund projects in pursuance of the diversification strategy of the Group and the transition to renewable energy,” Samaroo had stated.
Meanwhile, the Chairman had also mentioned other initiatives that DDL will be implementing for their staff, including the setting up of a medical centre, intensifying and expanding training, and pursuing the procurement of house lots for staff in need, with the relevant authorities.
