DEMTOCO records $1.780B profit after tax in 2020

0

Local cigarette distributor, Demerara Tobacco Company Limited (DEMTOCO) has recorded a whopping $1.780 billion in profits after taxation for the year ending December 31, 2020.

The company held its Annual General Meeting on Friday, where it was also revealed that DEMTOCO is now moving to reduce the health impact of its products on customers. The principal activities of DEMTOCO are the importation, marketing and sale of tobacco products in Guyana, which are manufactured under contract to predetermined specifications.

According to DEMTOCO’s Annual Financial Report, profit before taxation for last year was $3 billion.

Cash and Bank Balance as at 31 December 2020 totalled $1.491 billion compared to $580 million at the prior year-end, representing an increase of $911 million.

Meanwhile, operating activities generated revenues amounting to $3.1 billion for the year under review, while corporation tax accruing during the year was to the tune of $1.3 billion.

The Tobacco company also reported that total dividends paid last year totalled some $1.7 billion. In addition, Capital Expenditure for the year amounted to $60 million compared to $61 million for the previous year.

The Company did not have any intercompany loan transactions for 2020.

In August, October and December 2020 and March 2021 there were four interim dividend payments totalling G$66.20 per share. A final dividend of $9.85 per share is proposed by the Directors making a total payment for the Financial Year 2020 of $76.05 per share.

The Board of Directors currently comprises five Directors. Of the five Directors, four are Non-Executive Directors and two are independent. The Board is diversified by nationality and gender and represents a strong team with a broad range of professional backgrounds and styles.

However, this $1.780 billion profit was recorded even as DEMTOCO will now be moving to meet the evolving needs of customers under this new tagline – “A Better Tomorrow.”

In a statement from its AGM on Friday, the company said that since 1934, its vision has been to achieve and maintain leadership of the Guyanese Tobacco Industry in order to create long term shareholder value.

“We hold steadfast to the strategy of creating shareholder value, delivering profit growth and long-term business sustainability. Even in these unprecedented times, Demerara Tobacco has shown great resilience in overcoming difficulties and setbacks,” it noted.

Now, the company has unveiled its new corporate logo and tagline – “A Better Tomorrow” – which it says reflects both the changes in the world and by extension the business. It noted that the previous logo has served the company well for decades as a strong symbol of Guyana’s market leader in tobacco but now it wants to build on that strong foundation to create a better tomorrow for consumers, employees, shareholders and society.

“Our purpose is to build a better tomorrow by reducing the health impact of our business. Our ambition is to progressively transition our revenues from cigarettes to non-combustible products over time. To this end, our growth model will be developed with our portfolio expanding to meet our consumers’ evolving needs from tobacco to beyond. Supporting this is our new Ethos, which encompasses being bold, fast, empowered, responsible and diverse,” DEMTOCO stated.

On this note, the Tobacco company said it is focusing on utilising its capabilities to meet the changing needs of consumers and has invited stakeholders to join in on this journey as DEMTOCO seek to offer a new range of responsibly marketed products in tobacco.