Georgetown: The Demerara Distillers Limited (DDL) Group of Companies will be injecting some $1.3 billion into its modernisation plan, which will see upgrades done on machinery and acquisition of new equipment, according to recently appointed Chairman Komal Samaroo in his report.
He noted that the group will continue with its modernisation plan in 2014, which will see the money going towards the funding of upgrade works at the Shipping Wharf as well as acquiring more trucks to add to the fleet.
Works are also expected to be done at the storage facilities and key production equipment will be replaced. Through the modernisation plan, the company will also be looking to expand its distribution.
In 2013, the company expended some $853 million to upgrade critical machinery and equipment, which included the acquisition of a new Chilling and Filtration Unit. During last year, the company introduced a new line of non-alcoholic beverages – TOPCO Quenchers, which was received well.
“Our team remains committed to maintaining the very high standards of quality and to ensuring the delivery of safe products to our customers. As evident by our awardwinning rums, quality is in everything we do,” the Chairman stated.
Meanwhile, amid the change of chairmanship, the group has managed to record a 19 per cent increase in the financial year 2013, with a $1.569 billion profit after tax. Most of the operating entities within the group have registered improvement in their performance during the year. The group’s turnover increased by 11 per cent to $17.5 billion and the profit before tax was increased by 15 per cent from $1.569 billion to $2.205 billion, which reflected improved margins from cost reduction initiatives and efficiency drives undertaken by management.
Samaroo said that 2013 was another good year for group and its growth was as a result of continuous efforts to make El Dorado the world’s leading rum by creating a greater international market share. The Chairman pointed out that the group’s performance must be considered against the background of the slow economic recovery seen in 2013 as global economic growth slowed down.
Meanwhile, DDL saw a 14 per cent increase in its profit before tax of $1.462 billion while its turnover recorded an eight per cent increase of $11.5 billion when compared to the previous year’s. The Demerara Shipping Company Limited also recorded significant growth during 2012 and its performance in 2013 was no less, with a profit of $185 million compared to a $146 million in 2012. However, Distribution Services Limited (DSL) saw a decrease in its profit when compared to the previous year. The distribution outlet registered some $455 million profit before tax and this reduction was as a result of challenges experienced due to parallel trading of the major brands it represents, but the company will continue to address the issue.
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