Barbados Dairy Industries Limited is reporting a $2.26 million loss following a challenging 2024 when global supply chain challenges hurt milk powder availability and local raw milk production declined.
Management of the company better known as Pine Hill Dairy (PHD) say efforts are underway to “implement strategic initiatives aimed at improving sales performance, enhancing operational efficiency, and controlling costs to restore the company to profitability in the upcoming year”.
The Banks Holdings Limited subsidiary’s performance was detailed by chairman Luis M. Alvarez and country manager Shafia London in a directors’ statement accompanying its financial results for the financial year ended December 31, 2024.
They reported that “sales for the full year were $52.299 million, a decrease from the $61.259 million recorded in the previous year 2023”.
“The company reported an operating loss from operations before undernoted items of $3.560 million for the year ended December 31, 2024, a significant decline compared to an operating profit of $213 000 million in 2023,” the official said.
Supply chain challenges
“After accounting for restructuring costs and interest expense, the loss before taxation was $3.387 million, in contrast to a profit before taxation of $373 000 in the prior year. “The net loss for the year amounted to $2.266 million, a substantial shift from the net income of $357 000 in 2023. Total comprehensive loss for the period was $2.509
million, compared to total comprehensive income of $0.561 million in 2023,” Alvarez and London stated.
They noted that “the net losses for the period are primarily attributed to global supply chain challenges associated with milk powder availability and reduced production of raw milk from the local market due to operational and environmental factors which affect productivity at the farm level”.
Last year’s financial performance “resulted in a basic and diluted loss per share of $0.48, whereas the company reported earnings per share of $0.08 in 2023”.
“Total shareholders’ equity decreased to $34.922 million as at December 31, 2024, from $37.431 million at the end of 2023, primarily reflecting the net comprehensive loss for the year,” the chairman and country manager said.
Regarding PHD’s cash position, they stated: “The summary statement of cash flows for the year ended December 31, 2024, shows net cash from operating activities of $859 000.
“However, net cash used in investing activities was $1.582 million, and net cash used in financing activities was $322 000.
“Consequently, there was a net decrease in cash of $1.045 million for the year, with the cash balance at year-end being $5.135 million, down from $6.180 million at the beginning of the year. (SC)
