Barbados-based beverage group Banks Holdings Limited (BHL) recorded “robust” profitability last year despite reduced revenue and a higher corporate tax bill.
Chairman Luis M. Alvarez and country manager Shafia London attribute BHL’s “substantial recovery and growth in profitability” in 2024 to a strategic focus on operational efficiency and cost management.
They reported this in the directors’ statement attached to the company and its subsidiaries summary consolidated financial statements for the period ended December 31, 2024.
BHL’s pre-tax profit increased to $14.5 million last year, and post-tax earnings grew to more than $12 million.
The chairman and country manager noted that fiscal 2024 “presented a dynamic operating environment for the company”.
“While we navigated external pressures that impacted revenue, our strategic focus on operational efficiency and cost management resulted in a substantial recovery and growth in profitability,” they said.
“In 2024, sales volumes decreased by 9.5 per cent, primarily attributable to significant supply chain challenges and a generally depressed market demand. This led to a reduction in revenue, falling from $158 113 000 in 2023 to $150 444 000.
“However, our proactive measures, including a favourable shift in our category mix, rigorous cost controls implemented across the organisation, and strategic pricing adjustments, successfully mitigated the impact of lower revenue on our bottom line,” the officials added.
Alvarez and London shared that “these actions translated into a significant increase in profitability”.
“Profit from operations for the group and its subsidiaries more than doubled, surging from
$7 371 000 in 2023 to an impressive $15 323 000 in 2024. Similarly, income from operations rose substantially from $7 106 000 to $14 752 000,” they reported.
“This strong operational performance flowed through to our pre-tax and net income. Income before taxation from continuing operations saw a notable increase, rising from $8 061 000 in 2023 to $14 503 000 in 2024.
“Despite a higher taxation expense of $2 465 000 in 2024 (compared to a taxation benefit of $320 000 in 2023), net income for the period from continuing operations improved robustly from $8 381 000 to $12 039 000.”
They added: “Reflecting this enhanced profitability, basic and diluted earnings per share attributable to equity holders of the parent also increased significantly from $0.11 to $0.19.
“Turning to the statement of financial position, working capital decreased from $119 466 000 in 2023 to $48 464 000 in 2024. Total equity also decreased from $309 915 000 to $235 374 000.”
The management team said that it was “important to note that this decrease in total equity is primarily attributable to substantial dividends paid, amounting to $86 667 000 in 2024, representing a significant return of value to our shareholders”.
The officials said that BHL’s cash flow statement “demonstrates the underlying health of our operations”.
They elaborated, stating: “Net cash generated from operating activities showed strong growth, increasing from $21 329 000 in 2023 to $29 949 000 in 2024. Net cash used in investing activities decreased from $8 672 000 to $5 108 000.
“Net cash used in financing activities was $48 530 000 in 2024, primarily reflecting the aforementioned dividend payments (compared to $71 849 000 in 2023). The combined cash flows resulted in a decrease in cash and cash equivalents at the end of the period, from $143 361 000 in 2023 to $119 152 000 in 2024.”
Alvarez and London concluded overall that “despite navigating a challenging revenue landscape, 2024 was a year of strategic execution that resulted in a substantial turnaround and significant growth in operational profitability and net income”.
“The financial position reflects a managed decrease in working capital and a planned reduction in equity driven by the return of significant value to shareholders through dividends. Our core operating activities generated strong cash cows, providing a solid foundation as we move forward,” they said. (SC)
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