D&G releases disappointing second quarter results

Brewing and bottling giant Desnoes and Geddes Limited has released disappointing second quarter results.

It realised $205 million net profit for the three months ended December, which was a 41% decline from the $350 million reported in the previous year.

D&G earned a little over $3 billion from sales which represented a modest 2% growth.

The company pointed to the contraction of the alcoholic drinks market which it says continues to drag on volume and revenue performance.

In December, the Government changed the tax regime for alcoholic beverages to one based on alcohol volume.    

D&G says while this new framework reduces the significant anomaly that existed between the tonic wine category and the beer and stouts category, white rum now enjoys a large tax advantage over all other categories.

It adds that this disparity serves to disadvantage the company’s products in a fiercely competitive market and it will therefore continue to lobby for a level playing field in the interest of  fairness, conformance to international best practices and public health.