Despite seeing its overall export sales decline by $35.4 million (16%), Sterling Productions Inc recorded an after-tax profit of $94.4 million in 2010, a decrease of 2 per cent from the $96.4 million recorded in 2009.
Chairman Dr Leslie Chin, in his report in the company’s annual report said that the decrease in after-tax profit was due mainly to the increase in deferred taxes. The report covers the year ended December 31, 2010.
The company’s overall profit was $171,874,786 for last year, which represented an increase of 1.5 per cent over the amount recorded in 2009.
Chin mentioned that the company had to endure severe challenges with externally controlled prices for raw and packaging materials.
According to Chin, the company’s revenue increased by $235 million and totalled $2.575 billion for the year. The increased revenue, the chairman said, was due to improved demand seen during the year for Golden Cream Margarine, Mighty Foam Laundry Detergent, Igloo Ice Cream, Novelties Ice Cream and Baker’s Pride Shortening.
The company’s expenses increased to $513.5 million for the year, Chin said, compared to $452.2 million for the previous year. This represented a 20 per cent increase over the previous year. “The increase in expenses was mainly attributable to increases in employment cost based on union negotiations and new positions added to the current staff complement,” Chin said. Depreciation costs increased due to new additions of fixed assets.
The company also continued its marketing drive following on from the previous year. Consequently, marketing related costs also increased in the year.
Chin said that in 2010, the company’s export market saw “mixed occurrences.” “In some areas improvements were seen but overall export sales declined by $35.4 million or by 16%,” Chin said. According to him, this was as a result of loss of markets in Antigua and St Kitts due to a decline in tourism in those countries. However, according to him 2011 has seen these customers purchasing the company’s products again.
The chairman announced that the directors are comfortable with recommending a final dividend of $3.30 per ordinary share unit to be paid to shareholders. This is the same figure that was paid out last year. Chin said too that the Earnings per Share (EPS) decreased to $6.18 per share unit down from the $6.32 per share in the previous year.
The company will hold its 56th Annual General Meeting (AGM) on Friday at the Georgetown Club.
