Sterling reports improved figures
Stabroek News
June 4, 2004
Sterling Products Ltd has seen a 16.9% increase in sales for 2003 to 1.2B while after-tax profits rose to $60M from the 2002 figure of $49M.
According to the company's annual report sent out prior to a June 28 Annual General Meeting, the directors have recommended a dividend of $3.00 per share for the year, the same as in 2002.
Administrative and other expenses declined from $243M to $236M. Earnings per share were $3.94 as opposed to $3.21 in 2002.
Capital expenditure amounted to $147.5M as compared to $301.9M in 2002. The entire amount was financed from internally generated funds. The expenditure was related to improvements of ice cream, detergent and soap production operations, ice cream distribution and the upgrade of the management information system.
The volume of edible fats increased by 11% over 2002, ice cream by 3%, detergent by 63% and soap by 209%.
Gross profit was 25.3% of sales compared to 29.1% in 2003 and 33.2% in 2002. This reduction is due mainly to the higher prices of fats on the world markets. Meanwhile competition did not allow the company to increase its prices commensurately.
In January, the company's board underwent a reshuffle. Paul Fredericks, Charles Quintin and Clarence Hughes were asked to resign, the same day Johnny Carpenter, the chairman resigned because of a policy shift in the company.
The reason given for the request, according to new Chairman Dr Leslie Chin, was to cut costs. Chico Beharry of the Edward Beharry Group and main shareholder in Sterling, said the resignations would only be effective for a year.