While the COVID-19 pandemic crippled many thriving companies globally last year, the Demerara Tobacco Company Limited (DEMTOCO) was not one of them. It was one of the few establishments which did not have to reduce its staff nor did it have to resort to utilizing any government schemes (or subsidies) introduced to help companies weather the economic pains that came with the harsh environment created by the pandemic.
DEMTOCO saw what could be deemed as a massive increase in its after-tax profits given the circumstances. According to the company’s latest financial statements for 2020, DEMTOCO generated a profit after tax of $1.781 billion versus $1.638 billion for 2019 which represented an increase of 8.7%. Overall, the company saw growth in revenue of 1.3%, with a favourable movement in operating profit of 7.9% mainly driven by decreased operating costs versus the prior year.
In her report, Chairwoman of the Board, Kathryn Anne Abdulla said DEMTOCO is pleased with the results which demonstrate the company’s financial robustness thereby highlighting management’s ability to navigate the macro and socioeconomic challenges that the international crisis brought.
Given the new realities presented by the global pandemic, like many other organisations, Abdulla said Demerara Tobacco adapted and transitioned into a new way of working. She said, “We undertook this global crisis as a challenge. We transformed our vision of the future with agility while displaying steadfast commitment to our corporate values as we ensure the health and safety of our employees.”
The Chairwoman added, “2020 was a year where the Company rebranded, changed our motto to ‘A Better Tomorrow’ and introduced our Ethos which is Bold, Fast, Empowered, Diverse, Responsible. As the Company reflected on what sustainability meant as part of this journey, we moved from a business where sustainability was always important to one where it is front and center in all we do.”
Further to this, Abdulla said DEMTOCO’s priority throughout 2020 was to safeguard the health and welfare of all stakeholders while ensuring that the business continued to operate effectively. She was keen to note that the Board and management have worked very closely to address the disruptions experienced throughout the year while adding that the strength of the business, combined with the professionalism and resilience of its teams, enabled it to deliver a strong operational performance during challenging times.
She said, “This year’s performance was truly a collective effort and I am proud that we were able to boast the convening our first virtual Annual General Meeting of Shareholders (AGM) which was a great success.”
Guyana Standard understands that DEMTOCO is expected to convene its second virtual AGM this month.
