Desnoes & Geddes Ltd. (DG) – Audited Results In

The company has announced its audited financial results for the eighteen month period ended June 30, 1998.

-Profit after Tax up by $162 million to $164 million

-Profit before Tax up by $268 million to $314 million

-Profit before interest and Tax up by 25% to $569 million

In difficult trading conditions, D&G has continued to show financial progress and improved profits. Profits increased in 1997 to $164 million compared with a restated profit of $2 million for 1996 and a loss of ($112) million for 1995.

Cost reduction measures have contributed significantly to the turnaround in performance. The rationalization of production facilities with the closure of the Montego Bay plant and many similar actions taken elsewhere have reduced the cost base of the company.

The performance includes improved sales from exports with volumes growing at 22% for the12 month period vs 1996 and by 21% for the six months to June 1998 compared to the same period last year. Performance in the United States was particularly strong, with Red Stripe sales increasing by 33% for 1997 vs 1996 and by 43% for the six months to June 1998 compared to the same six month period in 1997.