Dominican wealth

[NALs]

This makes a lot of sense, thanks for your post CFA123. The top DR guys who are out in the world must know exactly where they stand.

On another point, Nals, in his post is exactly representing the viewpoint I was talking about. Nals, your source for Empresa Le?n Jimenes earnings comes from Wikipedia - do you really consider them as an accurate source, particularly for something like earnings statements?

Secondly, the amount quoted in Wikipedia for their profits is in PESOS, not dollars. Profits of RD$600M are approx US $20M/year. They only have 3000 employees. While they have a big impact locally, E Leon Jimenez is pretty small on a global scale.

Adrian

According to the Grupo Le?n Jimenes website, the company has:

- 5,000 direct employees
- Approximately 100,000 indirect employees
- Produces 8% of all taxes collected by the government
- The entire conglomerate is roughly 2.6% of the country's GDP, that would be about US$534.3 million if we use the nominal GDP.

I don't trust Wikipedia, but I do trust the conglomerate itself. It's the most admired and respected business on the entire island, that merits such trust.

Half a billion dollars is not pocket change.

Grupo Le?n Jimenes
-NALs

 

[A.Hidalgo]

According to the Grupo Le?n Jimenes website, the company has:

- 5,000 direct employees
- Approximately 100,000 indirect employees
- Produces 8% of all taxes collected by the government
- The entire conglomerate is roughly 2.6% of the country's GDP, that would be about US$534.3 million if we use the nominal GDP.

I don't trust Wikipedia, but I do trust the conglomerate itself. It's the most admired and respected business on the entire island, that merits such trust.

Half a billion dollars is not pocket change.

Grupo Le?n Jimenes
-NALs

I concur. A very philanthropic company that has given back much to the Dominican Republic.

 

[Adrian Bye]

Ok, these are some better numbers, presuming the numbers E Leon Jimenez are self reporting are accurate. The GDP for the island is listed as $20.55B on the CIA factbook: https://www.cia.gov/library/publications/the-world-factbook/geos/dr.html

Now, if we look at a similar company's profit margins (budweiser), we see they're around 15%:
BUD - Anheuser-Busch Companies, Inc. - Google Finance

15% of $534M is $80M/year profits for E Leon Jimenez. Thats not bad for a family owned company, but still small on the world stage.

Does anyone else have any numbers for other Dominican companies?

Adrian

 

[CFA123]

People that have been fortunate in life, especially here in the DR, can do amazing things to alter the future.

The big question is 'who' or 'what' can organize these people so the island will have a bright future?

#1 There's no obligation for anyone to do amazing things to alter the future.
#2 The rich individuals and large corporations do a tremendous amount simply by virtue of providing employment, healthcare, and increasing cash flow to, in, and around the country.
#3 Many (I want to say most) contribute charitably in a variety of ways to alleviate current woes and also on improving things for the future.
#4 Your statement seems to contain an implied assumption that Dominicans are not capable of accomplishing things on their own.

The improvements I have seen over the last 17 years in DR are simply mind boggling. Don't underestimate the intelligence, desire, or capability of those in power to plan and accomplish things. The biggest issues they have are the same one we have as expats - dealing with a generally low level of education, poor critical thinking, lack of infrastructure and available resources. And those things should continue to improve over time.

Sit back, watch, listen, learn... there's more than one way to accomplish things - and accomplish them they do. For the most part, the desire amongst those 'in power' in business or government is to improve life overall in the country. And it has happened and will continue to happen.

Have some respect for the people, their desires, and capabilities. Rather presumptious and a tad pessimistic to think some force needs to organize them and 'help them' decide how to best use their resources to achieve goals you believe they should have.

Don't mean to hit you too hard - it's just I hate to see things written that underestimate the capabilities that exist here on the island.

 

[chola1978]

Ok, these are some better numbers, presuming the numbers E Leon Jimenez are self reporting are accurate. The GDP for the island is listed as $20.55B on the CIA factbook: https://www.cia.gov/library/publications/the-world-factbook/geos/dr.html

Now, if we look at a similar company's profit margins (budweiser), we see they're around 15%:
BUD - Anheuser-Busch Companies, Inc. - Google Finance

15% of $534M is $80M/year profits for E Leon Jimenez. Thats not bad for a family owned company, but still small on the world stage.

Does anyone else have any numbers for other Dominican companies?

Adrian

So we are comparing our local wealth with that of the USA?
bueno...................
or we are looking that those business man/woman that make bout 10us mill per year and comparing to the same income of the states.
Adrian do you want me as a Dominican to said that we are insignificant in regards to wealth in a world scheme. CLARO que si.......................

Are we talking about Dominicans that make 10-20 Millones anuales USD or the ones that make 300mil per month. Cuz I dont know any of those.
We have a total population of 9.3million and about 3 million are in the market for goods and service.

So whe some one that make 300 Millones de pesos anuales brags about thier vacation home in the ALPES.........felicidadez.......if thier frineds are presidents nad influencial people around the world amen.............Last time I check I was like that in every major city I have visited. The Local Elite are nothoing out side thier comunity until they become a public Comany.........................

Cual es el punto Adrian...Que los dominicnaos nos creemos que somos gente?...............cono yo me confromo con poder pagar la escula de Mia and have moeny for gracery.may take a vacation to sosua............
No conosco esa clase de Old Money wleath your comapring Dominca Wealth to pero si te digo que no son lo mismo...............

all Latinos son extravagnate no somos british welath , realze espanol.......come on we are Caribenos........Somos de sangre caliente. El error de tu preguntas es que las esta poniendo donde el dineor que adquieren los dominicanos numca se va a poder comparar con el dinero que se genero durante la Revolucion Industrial.....We are a developing economy...........we are about 100year behing in wealth....

So you are right no somos nada in a global market.Things will change.........

 

[dv8]

Does anyone else have any numbers for other Dominican companies?
Adrian

president of brugal got almost 1 milion dollars annual bonus - minus the tax. bonus system is based on total company profit so even brugal would probably make close to 100 milion dollars profit and it is not the biggest of DR companies..

 

[Adrian Bye]

Adrian do you want me as a Dominican to said that we are insignificant in regards to wealth in a world scheme. CLARO que si.......................

You may know this.. but most Dominicans don't. And I mean it with absolute respect - I love living here. But I want to see some accuracy in the numbers.

Nals himself, the DR1 "economist" posted that Leon Jimenez had an annual profit of USD$600M/year. And he's a reasonably educated guy living in the US. But this is typical of what many Dominicans think.

DV8 - thanks for posting those numbers - however I have to confess I'm a little skeptical that Brugal is making $100M annual profit when we're calculating the much larger E Leon Jimenez at $80M. Remember, the entire country only does $20B/year.

Too many of the numbers in this country are hidden in the dark and are distorted. But one thing I've found - is no Dominicans on the top Forbes lists.

Please, if I'm off base, enlighten me!

Adrian

 

[NALs]

Nals himself, the DR1 "economist" posted that Leon Jimenez had an annual profit of USD$600M/year. And he's a reasonably educated guy living in the US. But this is typical of what many Dominicans think.

DV8 - thanks for posting those numbers - however I have to confess I'm a little skeptical that Brugal is making $100M annual profit when we're calculating the much larger E Leon Jimenez at $80M. Remember, the entire country only does $20B/year.

Too many of the numbers in this country are hidden in the dark and are distorted. But one thing I've found - is no Dominicans on the top Forbes lists.

Please, if I'm off base, enlighten me!

Adrian

I believe I added the word "supposedly true" to my original post.

In any case, while its true that the GDP on an exchange rate basis is a little over $20b, that actually is a little misleading and for that reason there is not a single economist in the world that compares economies on the basis of GDP on an exchange rate basis.

To take into account the value of a dollar in each country (ie. US$1 in the U.S. doesn't buy the same amount of goods/services as US$1 buys in the DR, for example), the GDP has to be converted from pesos to dollars through the Power Purchasing Parity, also known as PPP.

GDP (PPP) for the DR is over US$77 billion, in fact that makes the Dominican economy the largest in the Caribbean since the figure beats Puerto Rico's GDP by a few billions.

What does that mean? Basically, the amount of wealth that is produced in the Dominican Republic gives a purchasing power equivalent to US$77 billion.

To put this through another perspective, the E. Le?n Jimenes size in PPP dollars would surpass $2 billion. In other words, the effects E. Le?n Jimenes group has on the Dominican economy is the equivalent of a $2 billion corporation in the U.S.

In the same manner, a person earning US$1 million in the U.S. will not have the same lifestyle (assuming such person doesn't live beyond his means) as someone earning $1 million in the DR. In this case, a person earning US$1 million in the DR will live the equivalent lifestyle of a person earning US$4 million in the U.S.

For this reason, your comparison is slightly misleading because using crude numbers comparisons will not actually reflect the purchasing power of US$1 in each respective economy, which would allow a completely different lifestyle in each country given identical incomes.

And yes, many numbers are "hidden" in the DR, but that is because most companies are private enterprises and in the case when they do offer stocks, most of it is owned by the family that founded the business.

-NALs

 

[chola1978]

Gracias NaLs..........
So that make m income here equivalent to Middle class in the States.........Estoy progresando

This thread me esta recordando Macro economy....

 

[jackieboo]

#1 There's no obligation for anyone to do amazing things to alter the future.
#2 The rich individuals and large corporations do a tremendous amount simply by virtue of providing employment, healthcare, and increasing cash flow to, in, and around the country.
#3 Many (I want to say most) contribute charitably in a variety of ways to alleviate current woes and also on improving things for the future.
#4 Your statement seems to contain an implied assumption that Dominicans are not capable of accomplishing things on their own.

The improvements I have seen over the last 17 years in DR are simply mind boggling. Don't underestimate the intelligence, desire, or capability of those in power to plan and accomplish things. The biggest issues they have are the same one we have as expats - dealing with a generally low level of education, poor critical thinking, lack of infrastructure and available resources. And those things should continue to improve over time.

Sit back, watch, listen, learn... there's more than one way to accomplish things - and accomplish them they do. For the most part, the desire amongst those 'in power' in business or government is to improve life overall in the country. And it has happened and will continue to happen.

Have some respect for the people, their desires, and capabilities. Rather presumptious and a tad pessimistic to think some force needs to organize them and 'help them' decide how to best use their resources to achieve goals you believe they should have.

Don't mean to hit you too hard - it's just I hate to see things written that underestimate the capabilities that exist here on the island.

NALS,

I don't think I said anything about it being an obligation for the wealthy to do something. I was just agreeing with Chip that with foresight the future of this island is limitless. When asking 'who' or 'what' the question was posed as a retorical question.

I first came to this island in 1987, 20 years ago, and I can tell you first hand that there have been many advances for the positive. However in that same amount of time statistically it doesn't appear that the majority of the Dominican population agree that things are better.

The trickle down econonomics that the islands poor depend on seems to have slowed to a droplet economy.

The reality is that there are thousands of people that live on this island that do not have access to a proper syptic system or in many cases even potable water. For someone that is earning multimillions of US dollars a year it seems that finding solutions to these basic problems would be high on the list of charitable donations. It still doesn't mean it's obligatory it just means that it's a sad statement of society in general.