Total revenue rose by 16.6 percent to $27.9 billion at the Jamaican based brewers of the world-renowned Red Stripe beer, Desnoes & Geddes in 2022, up from $23.9 billion in 2021 resulting in profit before tax rising by 11.5 percent to $8.3 billion from $7.2 billion and resulted in a 16 percent rise in after tax profit to $6.6 billion from $5.7 billion in the year to December 2021.
Profit in 2022 was negatively affected by increased input cost relative to revenues at 52.85 percent up from 50.54 percent in 2021 for raw materials, consumables and services.
The principal activities of the company comprise the brewing, bottling and distribution of beers, stouts and spirits. In 2022, the company paid dividends of $2.56 per share amounting to $7.2 billion up from $5.5 billion in 2021.
In 2016, the majority of shares were acquired by Heineken Sweden AB, resulting in Heineken International B.V. having an increased control of 95.78 percent. In May 2016, the ownership was transferred from Heineken Sweden AB to Heineken Beverage Switzerland AG.
Profit climbs at Desnoes & Geddes
$190m JSE dividends for 2016
The Jamaica Stock Exchange announced the payment a final dividend for 2016 of 3.56 cents per share in May, bringing the for 2016 profits and $190.2 million, Mrs. Marlene Street-Forrest, newly promoted Managing Director of Stock Exchange informed IC Insider.com.
In 2015 we paid $140.2 million, representing 80 percent of consolidated profit and $190.2 million of the 2016 profits a total of 85 percent of group profits Street-Forrest stated. The payments over the last two years is in contrast with the stated dividend policy is no less 20 percent of profits to be paid in each year.
The payment was approved at a Special Meeting of the Board of Directors held on April 25 and is payable on May 31, 2017 to shareholders of record on May 11. The stock will start trading ex-dividend on May 9, 2017.
Last year, the JSE paid a dividend of 12.96 cents per share in December and a dividend of 53 cents per share, on May 6, 2016 based on number of shares in issue at the time. The JSE later in the year split their issued shares into 5 for each one.
The JSE will need to enjoy another big break in 2017, if they are to beat the results of $224 million made in 2016 from revenues of $921 million. In the first quarter of 2016, the JSE earned one off income estimated by IC Insider.com around $110 million from the sales of the Desnoes and Geddes shares to Heineken after the latter acquired majority shares in the local company.
US$194m for minority D&G owners
Jamaican shareholders will make a windfall when Dutch based Heineken bids US$194 million for the remaining shares in the Red Stripe brewery company it now does not own.
It could result in the delisting of Desnoes & Geddes (D&G) similar to what occurred a few years earlier when Italian based Campari bought the bulk of shares in Lascelles deMercado from Trinidad based CL Group triggering a bid for the remaining shares.
Heineken earlier this week acquired nearly three-quarters of the shares in local based brewery from UK based Diageo in a deal spanning Jamaica, Malaysia and Singapore and Ghana totalling US$780.5 million.
“In accordance with the Jamaican Takeover Code, as a result of the acquisition of Diageo’s shareholding in D&G. Heineken will in due course make a mandatory offer for all shares of D&G not already owned by Heineken. If they acquire enough shares to give them 90 percent ownership, they intend to apply the mandatory offer to compulsory acquire the rest. The minority interest represents 26.7 per cent of the issued share capital of D&G, and implies a maximum total consideration of US$ 194 million. Further announcements regarding the mandatory offer will follow in due course,” stated Heineken in a release.
Desnoes and Geddes had a bid as high as $13 per share during trading today but the stock never traded and it ended with 2,744,725 units on the bid at $10.58. The stock last traded on Wednesday at $8 well below the offer price of almost J$31 for each share with the offer priced in US dollars.
Owners in Jamaica Stock Exchange will also be in on the fortunes of the deal as the exchange will end up collecting a nice payday when the local shares are transferred. Going forward the exchange will lose the annual listing fee and fees for trading the stock on the exchange.
J$31 offer for D&G shares spikes market
The main market of the Jamaica Stock Exchange indices jumped on the back of a $1 movement in the price of Desnoes & Geddes in response to an offer by Heineken for approximately J$31 per share for the shares it does not now own. At the close, there were 14 stocks rising, 3 declining with 21 securities totalling 2,920,468 units, valued at $33,633,857 changing hands, in all market segments, and with three junior market stocks ending at new 52 weeks’ closing high.
The main market indices enjoyed a day of decent gains. The JSE Market Index climbed 1,270.20 points to 99,072.69, the JSE All Jamaican Composite indexjumped 1,419.52 points to 109,675.59 and the JSE combined index jumped 1,316.98 to end at 102,980.98 points.
IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had a reading of 16 stocks with bids higher than their last selling prices and 4 with offers that were lower.
In trading, Cable and Wireless added 1 cent with 8,000 shares changing hands to close at 51 cents, Carreras traded 70,682 shares to close $1.25 higher at $50.25, Desnoes and Geddes (D&G) traded just 3,000 shares to close at $8, after gaining $1. The D&G stock closed with a bid of $9.20 to buy the stock Jamaica Broilers closed at $6.50 with 29,188 shares changing ownership while gaining 41 cents, JMMB Group is worth watching having traded just 7,850 shares at $7.65 with a 1 cent gain but closed with the .
bid at $7.80 to buy 468,490 units with the closest amount offered being 51,500 shares at $8.50, the next amount offered is 9,171 units at $9.50. Kingston Wharves ended with a gain of 38 cents, to close at $7 with 301,000 shares changing hands. Sagicor Group with 1,659,265 shares trading, closed at $13.05, with a 5 cents rise, Scotia Group added 10 cents in ending at $24 while 164,793 shares traded and Proven Investments lost 2 cents with 25,000 units changing hands to close at 20 US cents.
D&G offer pushes JSE, juniors at new high
Activity on the Jamaica Stock Exchange on Wednesday morning has been slow but the news dominating the market is a J$31 offer proposed by Heineken to buy out all the shares in Desnoes & Geddes it does not now own. Heineken bought out the subsidiary of Diageo that owned the shares in Desnoes & Geddes thus giving them majority holdings in the local company. D&G traded at $8 with an increase of $1, the bid is now quoted at $10.50.
Elsewhere, trading so far has seen the junior market at a new all-time high with only a few of the stocks being active. Overall only 10 securities have traded at 11:15 am with a volume of a mere 57,540 units, 2 stocks declined and 6 gained.
Trading activity resulted in the JSE Market Index 535.63 points to 98,338.12. The JSE All Jamaican Composite index rose 598.60 points to 108,854.67, the JSE combined index 617.64 points to be at 102,281.64 and the junior market is up 12.53 points to 1,056.68 for a new record and is not very far off from the all-time high of 1,040.59.
HEINEKEN J$31 offer for D&G shares
Heineken N.V. (“HEINEKEN”) is to make an offer to acquire all of the minority shareholders shares in Desnoes & Geddes at US$0.259 per shares or the equivalent of J$31, the company stated in a release today. Udiam shall offer US$ 0.259 (the “Offer Price”) for each D&G Share. The Offer Price is the same price per D&G Share as Heineken International paid to Diageo in respect to the Acquisition.the offer represents a huge premium on the last traded price of the stock of $8 in trading today. The bid on the stock is now at $10.50.
Heineken N.V. (“HEINEKEN”) today has announced that Heineken International B.V. (“Heineken International”), a wholly-owned subsidiary of HEINEKEN, has acquired the entire issued share capital of Udiam Holdings AB (“Udiam”) from a subsidiary of Diageo plc (Diageo plc and its subsidiaries being “Diageo”) for the sum of US$420,992,826 (the “Acquisition”). Udiam owns 1,625,549,827 shares in D&G, which constitutes approximately 57.87% of the share capital of D&G. Heineken International has also acquired a small shareholding which Diageo 
held directly in D&G. The price paid by Heineken International to Diageo for Udiam, and the direct shareholding, equates to US$ 0.259 per D&G share. Prior to the Acquisition, another subsidiary of HEINEKEN already owned 434,033,141 D&G shares, which constitutes approximately 15.45% of the share capital of D&G. Following the Acquisition, HEINEKEN indirectly owns 2,059,610,670 shares, which constitutes approximately 73.32% of the share capital of D&G.
As a consequence of the Acquisition, and pursuant to Regulation 12(1) of the Jamaican Takeover Code, Udiam intends to make an offer (the “Offer”) to the shareholders of D&G for the acquisition of any and all of the shares which HEINEKEN does not, directly or indirectly, currently own (the “D&G Shares”). The Offer will be made through a formal tender offer pursuant to the Jamaican Takeover Code and applicable requirements.
