Demtoco forecasts better performance for 2020

first_imgThe Demerara Tobacco Company (Demtoco) is anticipating a hike in the sale of cigarettes locally. The expected improvement in spending power comes in light of the development of the country’s lucrative oil and gas industry.“…with the prospect of oil production in 2020, we anticipate improvements in the purchasing power of our consumers which should lead to increasing opportunities for business sustainability and growth,” said Demtoco’s Managing Director, Christopher Brown, in his review published in the 2018 Annual Report.“The economic forecast for Guyana suggests brighter prospects for the country and for Demerara Tobacco Company,” he noted.Last year, sales grew by 4.5 per cent from $6.1 billion in 2017 to $6.4 billion in 2018. Demtoco said this resulted mainly from its consumers “appreciating and choosing our brands, versus the illicit competition”.Despite the fact of an increasing presence of the illicit trade, the company said it was able to maintain volume stability relative to 2017.In fact, Demtoco’s Bristol, Pall Mall and Dunhill brands all posted increased sales volumes, contributing to the growth experienced in 2018.Even as it anticipates an increase in cigarette sales, the company said it continues to support laws and regulations prohibiting the sale of these products to anyone under the legal minimum age of 18.In order to achieve this, the company worked directly with retailers to uphold the law and it even supported distributors in providing training and point-of-sale materials for use by retailers to help uphold the minimum age laws.Cigarette smoking harms nearly every organ of the body and causes many diseases, according to the Centre for Disease Control and Prevention. In fact, smoking is the leading preventable cause of death in the USA.“We understand the concerns about our products and are working hard to conduct our business responsibly, in an industry seen by many as controversial,” Demtoco said.Demtoco last year recorded a 14.4 per cent increase in profits before tax, making a stunning rebound after five consecutive years of decline.Chairman Marcus Steele attributed this success to the firm’s strong leadership and its key business partnerships, notwithstanding the challenge it now faces with complying with the new regulations and the challenges it continues to face with the illicit trade.last_img

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