Guinness Ghana at the close of its last financial year — which ended on June 30, 2023 — achieved it’s strongest financial performance in nominal terms in it’s 63-year history
This comes despite the broad economic headwinds and their particular impact on manufacturers.
Addressing investors at the ‘Facts Behind the Figures’ session hosted by Ghana Stock Exchange (GSE), managing director Helene Weesie acknowledged the challenges posed by inflation, consistent input cost increases, and local currency devaluation in first-half of the year.
“Starting in November, we took decisive steps to counteract the FX effects, combat inflation and reduce costs. Concurrently, we remained committed to investing in our priority brands. This strategic shift led us to a year-end result characterised by double-digit revenue growth and sustained volumes. While H1 presented hurdles, a robust H2 propelled us to deliver our best year ever for Guinness Ghana,” she stated.
The company’s first female managing director highlighted the establishment of a solid foundation to navigate the ongoing challenging economic landscape. She expressed pride in the team’s resilience, resourcefulness and agility in adapting processes and devising innovative solutions. Furthermore, she underscored the growing brand equity as a testament to the brand’s enduring value.
“We have truly embodied our Guinness Ghana motto, ‘Yes we can,’ in real-time,” she added. The MD stressed the company’s resilience in the face of unprecedented economic challenges. She noted that Guinness Ghana not only weathered the storm, but also emerged with increased market share, growing brand equity and highly engaged employees, demonstrating a robust foundation for the future.
Review
Finance Director, Justin Mollel, attributed the results to comprehensive measures implemented in response to current economic conditions. Key achievements included a 36 percent revenue growth; a profit surge of over 600 percent; and transitioning from negative to positive cash flow. Shareholders also reaped substantial benefits with a staggering 676 percent increase in earnings per share, a positive return on capital, and the declaration of dividends.
Sustainability
Corporate Relations Director, Sylvia Owusu-Ankomah, highlighted the business’s commitment to community engagement across the country. The company’s 10-year ESG action plan aims to create a more inclusive and sustainable world by prioritising positive drinking, inclusion and diversity, and sustainability throughout the supply chain.
“We consciously provided clean water access to over 11,000 community members in the Pusiga and Jirapa assemblies, spearheaded a national plastic collection campaign for recycling, supported farmers to bolster our sorghum and maize value chain, and educated more than 20,000 young individuals on the consequences of underage drinking. Our emphasis on diversity and inclusion – particularly in promoting gender equity across our operations and involving women as beneficiaries of our community programmes, continues to drive our sustainability efforts,” she explained.
This performance appears to have caught the attention of investors, as Guinness Ghana Breweries’ share price rallied to GH¢2.69 at close of the second trading week in September. This represents a 31.2 percent increase in its valuation from the GH¢2.05 recorded at beginning of the year, making it the fifth-best performer on the GSE in terms of year-to-date performance.
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