Red Stripe Sales Hit By Downturn And Tax Changes, Restructuring Necessary to Deliver Turnaround

Jamaican brewer Desnoes & Geddes (D&G), the producer of Red Stripe beer, has reported a drop in sales and earnings for its latest fiscal year, ending June 30 2010. Over the 12 months, the firm's revenues fell by 1% to JMD13.33bn while profit after tax fell by 49% to JMD789mn. The decline was attributed to a difficult business environment and tax inequalities, which has led to alternative forms of alcohol gaining market share. With BMI expecting little improvement in the Jamaican economic environment in the near term, there looks to be little reason for optimism and it is not surprising

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