Barbados Dairy Industries Limited, trading as Pine Hill Dairy, proved to be a drag on the half-year results of parent company Banks Holdings Ltd.
According to the directors’ statement accompanying consolidated financial statements for the six months ended February 28, 2013, the group’s results reflected improvement as most companies’ performance continued to improve in line with expectations.
However, the statement signed by chairman Anthony King and chief executive officer Richard Cozier, said the notable exception was the dairy where margins continued to be challenged and increased losses detracted from otherwise higher profitability in other operations of the group.
The directors said discussions were under way with all stakeholders “with a view to implementing an industry-wide strategy to address this issue”.
King and Cozier added that consolidated revenues remained on par with 2012.
“However, business lost in the hotel all-inclusive sector has been replaced though aggressive marketing efforts which have secured new business in the carbonated soft drink product range and generated robust growth in both our brewed alcoholic and non-alcoholic ranges,” they said.
The directors also said the share of income from associates was reduced as a result of lower profits from Citrus Products of Belize Limited.
“The reductions on concentrate commodity prices have significantly impacted the results of this company compared to 2012.
“Profits from our other major associates were above those of the previous year,” they said.
The island’s largest beverage conglomerate’s revenue increased marginally from $90.4 million in 2012 to $90.5 million while its net income rose from $4.2 million to $5.8 million.
Earnings per share also moved from 6.5 cents to 8.9 cents.
Banks Holdings has current assets of $54.7 million and current liabilities of $44.7 million. (NB)
