Banks DIH Limited Chairman Clifford Reis on Sunday revealed that his company was forced to cut overtime to help reduce overhead costs as it continues to be affected by the global financial crisis.
Reis was at the time addressing shareholders in Berbice. He said the Berbice operations of the company continue to be one of its pillars. Sales in Berbice for 2013 were $2.261 billion, while 1,595,000 cases/units of the
company’s products passed though the branch, which, Reis noted, is in excess of one month’s sales for the entire company.
Also speaking at the meeting was Branch Manager Reginald Matthews, who noted that the branch recorded an 11 per cent increase in sales over the previous year. The branch was awarded the chairman’s trophy for the third consecutive year. Commenting on the achievement, Mathews noted that there was support from all around. “This would not have been possible without you, the shareholders; we are truly indebted to you for your worthwhile investment.” He added that the New Amsterdam Quik Serv netted $91.3 million last year.
During the year, the branch also reopened its Kiddies Corner, which also contributed to the success of the Berbice operations. The patio bar was closed and the Kiddies Corner moved to that location to accommodate the construction of the new Citizens Bank branch. “By closing that down and building the Kiddies Corner, the company is now realising a sale of one million dollars a month… And there is no alcohol being sold there,” Matthews said.
Regarding the company’s success in 2013, Reis said during the last financial year, there were some challenges that affected the beverage giant in a negative way, mainly the result of a sluggish global economic recovery. In this regard, he said, the company has embarked on a new frontier which was more challenging than rewarding.
The chairman stressed that when the national economy slows, everyone is affected, as reduced disposable income results in a reduction in spending power. “Our company is not exempted from this reality. My fellow shareholders, this situation now requires that we sharpen our focus on what needs to be done and find new and more creative ways to reduce expenses and increase revenue. Becoming despondent, losing courage and playing the blame game will not take us out of this environment…” Reis said.
In highlighting some of the new strategies that the company has implemented to cushion the impact of a slow global recovery, Reis said the company has taken a decision to stop paying overtime to employees and has employed the services of robots at its Thirst Park operations to reduce overhead cost.
He said the company continues to make contributions to Berbice. He added, “Bars, clubs and other places of business have been branded and the physical environment of communities have been enhanced as a result of activities of the sales and marketing team.”
As part of its annual shareholders’ meeting, the company presents schools in Berbice with a cheque to assist with their development. This year, the Auclyne and Eversham primary schools were the recipients. During the last financial year, Banks DIH Limited recorded a before profit of $3.8 billion compared with $3.7 billion 2012. Its after-tax profit for 2013 was $2.5 billion, an increase of $159 million.
[SOURCE: GUYANA TIMES]
