Banks Holdings Limited Reports Strong Third Quarter Results, Meeting Profit Projections

The Banks Holdings Limited (BHL) group is delivering on profit projections as it released its third-quarter results.

New chairman Luis M. Alvarez outlined that the Newton, Christ Church-based beverage conglomerate ended the period on September 30, with revenues reaching $112 million. This compares favourably with the nine months in 2022 when the revenue reached $102.46 million.

In the Directors’ Statement that accompanied the unaudited results, Alvarez said the BHL group continued to “execute its long-term plans” while delivering “strong results” from its businesses in the third quarter.

Alvarez, who took over chairmanship of the BHL group from Caio Miranda, told stakeholders in the recent filing that the improved performance was also driven by “making the changes necessary to deliver increases on our top and bottom lines”.

The near $9 million or nine per cent increase in revenue compared to the similar period of 2022. The group’s gross profit rose to $34 million at September 30, compared to $30 million in the third quarter of 2022.

Alvarez told investors that profit from operations was $10 million, up from the $7 million recorded for the comparable period last year and this represented growth of 42 per cent.

He stated the increase was attributed to volume growth, operational efficiency, executing on cost controls, and “improved profitability related to pricing rationalisation in all markets to offset high global cost increases”.

The BHL group which includes Banks Barbados Breweries Ltd, Banks Distribution Ltd, and Barbados Dairy Industries Ltd which trades as Pine Hill Dairy, ended the third quarter with cash balances totalling $126 million, representing a drop of $202 million at the last quarter of 2022.

“As mentioned in our previous disclosures, the reduction in cash is attributable to the settlement of long outstanding dividend liability to our majority shareholder. As at the last quarter close, 60 per cent of the liability has been settled,” the chairman revealed.

“We continue to focus and invest in operational efficiencies to improve productivity and reduce our overall cost per hectoliter and targeted campaigns that leverage our strength in the market.

“We are proud of our remarkable ability to build a strong foundation and continue our momentum despite unprecedented headwinds,” Alvarez added.

(IMC1)