Chairman of Sterling, Mr. Johnny Carpenter, told shareholders attending the 47th Annual General Meeting, that the company had "another rewarding year", recording $1.082B in sales last year, an increase of eight per cent over the previous year.

"The year 2001 has been yet another rewarding year for Sterling Products Ltd. Despite a downturn in the economy, our company has continued to record positive increases both in sales and profitability and has achieved this without having to raise selling prices during the year," he said.

His report yesterday followed that of Demerara Distillers Limited (DDL) Chairman, Mr. Yesu Persaud, who Friday said that despite an adverse business environment, the political unrest and instability that prevailed in Guyana last year, DDL had "championed the odds".

He proudly announced that the Group recorded a whopping $8B turnover for last year with a pre-tax profit of $1.1B.

"Despite the political unrest after the general elections, the stagnation in the local economy during the year, and the adverse impact of the September 11 attack on the twin-towers of the World Trade Center, your company had a good year," Persaud told hundreds of shareholders gathered at DDL's Diamond, East Bank Demerara Complex for the company's 50th Annual General Meeting (AGM).

Pointing out that the business environment was adversely affected by political unrest and protests in the aftermath of the 2001 general elections, Persaud said political and economic stability are absolute imperatives in order to create a climate of confidence that would attract local and foreign investments necessary for the creation of wealth and increased employment opportunities for the Guyanese people.

According to him, the growth in Guyana's Gross Domestic Product (GDP) for last year was less than two per cent.

He said Guyana needs an annual growth rate in the order of eight per cent more "if any significant impact is to be made on improving the standard of living of our people to a level at which each citizen can with confidence look forward to a better way of life".

"I repeat - it is critical to create an atmosphere of political stability. This in turn will result in economic stability along with public and investor confidence, elements so necessary to attract local and foreign investments, to create wealth and jobs that would keep our people at home, thus putting a brake on the continuing exodus of skilled professionals and business people to North America, and better still to motivate a return of human and capital resources to Guyana," he stated.

"Improved structuring of production procedures and more efficient distribution routes coupled with both internal and external training of our staff in marketing, production and quality assurance have enabled us to increase sales of ice cream and edible fats products," Carpenter reported yesterday.

"The soap and detergent plants both need more work in production and product presentation (and) much has already been completed and we expect that both of these plants will be in position to make major contributions to our bottom line in the new year," the Sterling Chairman said.

"Our successful rights issue which realised $610.9M has guaranteed the means for the restructuring and modernisation of our plant.

"We have already purchased a state of the art edible fats processing plant which we expect to commission at the end of July 2002," Carpenter said.

He noted that net profit available for distribution amounted to $130.9M in 2001 compared to $114.3M the previous year. This represented earning per share in dollars of 8.57 compared with 12.47 in 2000, a decrease of 3.90 per share.

Carpenter said this reduction resulted from a rights issue made during the year.

He noted that an interim dividend of 10 per cent was paid in December 2001 with the Directors recommending a final dividend of 20 per cent making a total of 30 per cent for the year.

"I wish to express my gratitude and thanks to my fellow Directors and to the management and staff at all levels for their sterling contribution towards the success of the company and look forward to their continued support," Carpenter told shareholders.

"I would also like to thank our many valued customers and friends and look forward to their continued support," he added.

"We have re-evaluated and classified our long-term objectives and recognise that we must satisfy the needs of our customers if we are to stay ahead of our competitors," Carpenter reasoned.

In this regard, he said the company has strategically focused on product development, presentation and marketing.

Key laboratory testing equipment has been acquired to enhance product development and the quality assurance procedures, he said.

"We commenced a repackaging and relabelling exercise to improve the presentation of our products, some of which have been completed.

"We have also increased our fleet of delivery vehicles in order to obtain a wider coverage of the market. We are consolidating for the future and expect Sterling to continue to be a viable manufacturing force in the region," Carpenter stated.