GGBL Holds 37th AGM

Thursday November 19, 2009
By Times Reporter

Guinness Ghana Breweries Limited (GGBL)held its 37th annual general meeting at the Golden Tulip in Kumasi on Tuesday.

At the meeting, shareholders were briefed on the GGBL’s financial performance which the company’s turnover on a group basis appreciated by 24 per cent, up from GH¢162 million in 2008 to GH¢2001 million in 2009 financial year which ended in June this year.

Profit before tax however, decreased by 31 per cent to GH¢16 million. Earnings per share also decreased by 31 per cent to GH¢0.069, largely due to devaluation of the cedi coupled with supply constraints from water utilities to our breweries.

In line with this performance, the board of directors proposed and was accepted by the shareholders a total dividend payout per share of GH¢0.0400.

In his statement to shareholders, the new board chairman of GGBL, Mr. David Harlock said: “This has been a very challenging year in terms of volume performance of GGBL, as we have had to operate in a very difficult global and local economic environment. Inflation is hovering around 18 per cent, up from 11 per cent in 2006.

“Interest rates are steadily climbing back to the highs of 10 years ago at nearly 30 per cent and the local currency the cedi has depreciated by nearly 40 per cent.

These factors coupled with the challenges the company faced throughout the year around water shortage, utilities and machine maintenance stalled the performance of the company.”

Despite these very difficult times, Mr. Harlock said GGBL maintained its leadership position in the market, in both the beer and soft drinks sectors.

GGBL was also able to fulfill its corporate social responsibilities by providing potable water to 200,000 Ghanaians under its Water of Life programme, he said, adding that GGBL’s commitment to “being the best will see the company through these turbulent times of economic uncertainty”.

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