Red Stripe delays dividend for 3,400

Blaming the changes in tax policy implemented this month, Desnoes & Geddes, trading as Red Stripe, said on Wednesday it will not, as is customary, distribute a dividend to shareholders this month.

The board, which is led by Chairman Richard Byles, said, however, that it will review the decision in March.

"The board noted the impact of the discrimi-natory tax regime on the business and is of the opinion it would not be in the best interest of the shareholders to pay a dividend at this time," Red Stripe said in a statement.

"We wish to reassure our more than 3,400 shareholders that we continue to manage the company toward growth and increased profitability."

The company, which has threat-ened to split its manufacturing operation and take its export production overseas, said "the removal of the discriminatory tax regime and the establishment of a level playing field" was integral to its profitability.

Domestic beer sales, on which excise tax is charged, has tanked in the recession, and Red Stripe expects the higher taxes on beer will further depress its Jamaican market.

Red Stripe has already paid out interim dividend of 10 cents this year, amounting to J$281 million. Last year, its total distribution amounted to J$1.12 billion, or 40 cents per share.

business@gleanerjm.com