Banks DIH group after-tax profits up by 25%

After-tax profits for the Banks DIH group rose by 25% this year compared to last year on the back of higher sales of its products and robust performance by its key subsidiary Citizens Bank Inc.

The company’s annual report disclosed that after tax profit for the group showed a significant jump from $1.28B to $1.6B. The company’s net profit moved from $1.2B last year to $1.36B this year – an increase of 21%. Earnings per share for the group moved from $1.29 to $1.60. The group’s 55th Annual General Meeting will be held at Thirst Park on January 22, 2011.

In his Chairman’s report, Clifford Reis said that the improved financial results were due to an increase in physical sales by  17%, higher selling prices, more exports and a steep rise in Citizens Bank’s net profit by 37%.

Citizens – a 51% owned subsidiary of the company grew its revenue from $1.78B to $1.93B or 8%. After-tax profit skyrocketed to $535M from $391M – an increase of 37%. Total assets rose by $6.2B from $20.9B to $27.2B or 30%. Loan assets rose by 18% over the last year to $12.3B. Deposits jumped from $17.9B to $23.4B or 31%. Earnings per share were $8.99 compared to $6.57 in the previous year. Demand deposits at Citizens Bank slid from $3.5B to $2.8B while savings deposits rose from $8.2B to $10.6B and term deposits from $4.4B to $7.9B. Accrued interest payable moved from $164M to $182M.

Detailed information on the performance of each Banks DIH division – once contained in the group’s annual report – was not available in this one. It however revealed that the sales of beverages rose from $12.7B in 2009 to $14.7B, sales of food items from $1.45B to $1.57B and hotel and laundry services income from $50M to $54M.

During the year, the chairman’s report said, the company continued to optimise its manufacturing processes. This was reflected in the acquisition and installation of a Krones Bottle Washer for the beer bottling plant and new equipment for food preparation at its restaurants.

The company’s soft drink glass line will be de-commissioned and a new state of the art 1500 BPM soft drink plant will be installed.

Its waste water treatment plant is under construction and is expected to be commissioned by the end of this month in line with arrangements with the Coca-Cola Company and in keeping with the company’s environmental commitments.

In the new financial year, Banks DIH envisages the replacement of the Co2 generating plant, the installation of a new Electronic Bottle Inspector and Checkmat system for the beer bottling plant.

The Board of Directors declared an interim dividend of $0.14 per share which was paid out on May 17th, 2010, a second interim payout of $0.14 was made on October 18th, 2010 and a final dividend is recommended of $0.22. Dividends received from Banks Holding Limited, Barbados for the year was $61M and dividends paid in turn to Banks Holdings were $94M.

The report disclosed that Banks DIH subsidiary, Caribanks Shipping Company Limited was dormant during this year.

In his report, Reis also acknowledged the contribution of Azam A Khan, the group’s former Finance Director who resigned after  40 years. Khan will continue as a non-executive director.

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