Sterling Products Limited is a manufacturing company that specialises in the production and marketing of quality food products and cleaning agents. Ice cream, laundry detergents, margarine and hand sanitisers are some of its products offerings from its diversified product mix. Sterling Products Limited was incorporated as a Public Limited Liability Company on October 15, 1954. In 1998, the Beharry Group of companies acquired a majority shareholding in the Company.
According to the 2020 Annual Report for Sterling Products Limited, revenues recorded was 3,601,294,139 GYD compared to 3,605,082,556 GYD in 2019, a decrease of 3.8 million GYD or 0.1 percent. This decrease in revenues arose mainly from a decline in the export market for Ice Cream Products in the Caribbean Region. The food and branded products was the best segment performer accruing the largest share of revenues. It accounted for eighty-three percent (83%) of revenues.
Furthermore, according to the 2020 Annual Report, profit before taxation was 241.8 million GYD for the year, an increase of 51.1 million GYD or 26.8 percent over year 2019. After deducting income tax charges of 73.2 million GYD (2019- 69.2 million GYD), profit after tax for the year totalled 168.5 million GYD, an increase of 47 million GYD or 38.7 percent over year 2019 despite the electoral and COVID-19 challenges which plagued Guyana. Earnings per share increased from 7.96 GYD in 2019 to 11.04 GYD in 2020, representing an increase of about 40 percent.
The stock has not traded frequently on the exchange within the last year. The stock was last traded on August 4, 2021 and has only been traded ten (10) times during the period January 1-September 6, 2021. The stock price started the year at 275.1 GYD and has increased to 285 GYD, an appreciation of 3.6 percent (SPL, 2021).
Every challenge presents opportunities and management was able to innovate and create a new product, the Mighty Foam Hand Sanitizer. Additionally, management focused on cost-cutting measures which helped to increase the profit margins despite a slight decrease in revenues. With oil revenues coming on stream, Guyana is expected to invest significant resources to sharply reduce energy costs that have impeded growth in the manufacturing industry. This prospect bodes well for the future growth and expansion of Sterling Products Limited.