GGBL gives shareholders financial updates
Guiness Ghana Breweries Limited (GGBL), a Diageo business, has updated its shareholders on the company’s financial performance for the year ended June 30, 2013 at its 41st Annual General Meeting held at the Golden Tulip Hotel in Kumasi.
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In his statement, the Chairman of the Board, David Harlock, outlined challenges the business faced during the period under review, particularly in the second half.
Inconsistent supply of water and electricity, high inflation, depreciation of the cedi and high interest rates that led to a softness in consumer demand and operational challenges.
This had an impact on volumes which declined by four per cent during the year.
Net sales increased by 10 per cent mainly driven by a positive price mix, with a good performance of spirits, and the government introducing excise duty relief for use of local raw materials.
During the year, management minimised disruptions from water supply by tankering water to production sites, thus increasing costs.
This, coupled with an adverse impact from foreign exchange movement, contributed to a 16-per cent decline in profit before tax and a 27-per cent decrease in profit after tax.
Mr Harlock said: Notwithstanding the macroeconomic environment and a slowdown in consumer spending in the second half, we made significant strides in maintaining our leading position as the only total beverage business in Ghana and securing solid foundations for future growth. I was delighted that GGBL introduced Ghana’s first cassava beer – Ruut Extra Premium Bee, which wamaking a real impact in local communities.
“We have invested considerably in the expansion of our Kaasi Brewery in Kumasi; launched new packaging for Malta Guinness and continued to lead the development of the premium spirits category in Ghana.”
I am also very pleased to report the continued progress in our sustainability and responsibility agenda - recognised recently by our winning of the best corporate social responsibility (CSR) award by the Association of Ghana Industries.
During the year we have laid down the foundations for long-term growth, and I am confident that our business and its leaders, with the support of our shareholders will continue leading in the beverage industry in Ghana’.
The Board of Directors, declared a final dividend of GH¢0.01729 per share.
