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DDL records GUY$1.2 billion profit; int’l markets driving growth

Yesu_Persaud
Mr. Yesu Persaud

Demerara Distillers Limited (DDL) and subsidiaries have announced the group’s results for the financial year 2012, the company said in a statement.

The Group’s profit before tax increased by 12% in 2012 (after deducting the one off dividend received from BEV Processors Inc. in 2011 which amounted to $288M). Turnover increased from $14.6 billion in 2011 to $15.8 billion in 2012, reflecting an 8.2% growth.  

In his report, Chairman Dr. Yesu Persaud stated that “the growth in the DDL Group’s performance was primarily determined by the achievements in the international markets.”

The Chairman said the company continued to focus on the development of its international markets despite the economic challenges faced by many western countries especially those in Europe, and the USA. “The ongoing ‘euro crisis’ has impacted our European operations, but there is every indication that the situation will improve in the coming year”, he said.  

The growth in international sales has contributed significantly to the increase in the company’s revenue. Revenue from the sale of branded products increased by 23% and for bulk sales by 29% in 2012.

During the year 2012, the company responded to popular demand and reintroduced the once popular brand Five-O which has received favourable response in the domestic market. The company also successfully launched a new Ivanoff Vodka Cranberry.

The Chairman also noted the improved performances of other subsidiaries in the past year. Particularly encouraging was the turnaround of TOPCO to profitability after several years of losses. This company made a net profit of $16m compared to a previous year loss of $16.4m. Major improvements in the operations of Distribution Services Limited were also recorded as the company commissioned its modern, upgraded Cash and Carry at Diamond on the East Bank of Demerara in December 2012.

The Chairman expressed his confidence that the company’s capability to meet consumer demands in the future, along with its plans to further upgrade its operations, has put it in a position for greater success in 2013.