DDL sales rose during the COVID-19 pandemic
… now aiming to exchange for a promised oil boom
Kaieteur News – The new coronavirus (COVID-19) made devastating pandemics the size of the world this past year and while Guyana’s oil-free economy fell by a negative 7.3 percent, local brewery giant Demerara Distillers Limited (DDL) has seen its business increasing by about 10 percent, with a group turnover of about G $ 24.7B.
DDL Chairman Komal Samaroo
The company in 2019 saw an annual turnover of G $ 22.83B, representing an increase in business of about G $ 2.3B for 2020.
This is according to DDL Chairman Komal Samaroo in his report on the company’s financial performance during 2020 – the first full year of the pandemic.
In fact, profit for the DDL group in the year was reported at G $ 5.2B last year, compared to the company’s performance in 2019, which had seen profits net some G $ 4.5B.
According to Samaroo, this represents an increase of about $ 662M in profit over the previous year of 14.5 per cent.
Samaroo, in its shareholder report in the company’s 2020 Annual Report, also noted that COVID-19 had a serious negative impact on the export of branded products in the Caribbean where revenues fell by some 33.5 percent.
However, this contrasts with “the improvements in North America and Europe (which) made up that shortfall, leading to the end of the year with overall export of branded products at the same level as the previous year. . ”
According to Samaroo, bulk export turnover in the year, more than the previous year’s turnover was 10 percent, ”and” compared to 2019, turnover in the domestic market increased by 11 percent overall in 2020. “
It was noted that, while the company’s profit before tax was $ 5.2B, the after-tax group profit was G $ 3.9B – an increase of $ 408M over the previous year.
Earnings per share were also increased in 2020 to $ 5.06 compared to $ 4.53 the previous year.
Shareholders’ equity in DDL rose at the end of the year, according to Samaroo, to G $ 32B a share, a 14 percent increase from $ 4.2B over the previous year.
It was reported that the payment of dividends is provisional, he reported, at the end of December 2020 and that the final payments due at next year’s AGM will have to be approved by Directors on Friday, April 23.
2020 Expenditure
Samaroo in its report has since noted that with some $ 4.8B in net cash generated this past year, the Group was able to plug some $ 2.1B into capital investments.
As such, he reported that TOPCO’s Fruit Processing and Packaging Equipment was “one of the group’s major capital projects in 2020.”
He noted, however, that implementing measures globally to prevent the spread of CIVOD-19 had resulted in significant delays in completing the project within the targeted timescale.
In addition, he said, the Group in 2020 also restored and upgraded the bio-methanization plant, which accounted for another $ 215 million in spending.
Looking ahead, Samaroo expressed optimism that the company could only retrieve its vial from the domestic sugar industry and not, as was the case last year, import 23 percent of its required stock.
He also noted that the recently elected People’s Party / Civic Party (PPP / C) administration in its 2021 Budget “foresees significant growth in the near future from increased oil production” and that “the Group’s aim is to capitalize on maximizing the opportunities offered by a strong national economic environment. ”