Guinness Ghana Breweries PLC posted a robust first-half performance for 2024, with operating profit soaring 83% to GH¢126.6 million, driven by a 36% jump in revenue to GH¢1.6 billion.
The unaudited financial results, released this week, highlight the brewer’s success in navigating inflationary pressures and expanding its market share through strategic pricing and volume growth.
Net sales growth outpaced a 24% rise in cost of goods sold (GH¢1.3 billion), which the company attributed to higher raw material expenses and distribution costs. Gross profit climbed 44% to GH¢303.1 million, reflecting improved margins. Selling, general, and administrative expenses rose 24% to GH¢176.6 million, but tighter cost controls helped operating profit nearly double compared to the GH¢69.1 million reported in the same period last year.
Profit after tax surged to GH¢83.9 million, up from GH¢28 million in 2023, bolstered by a 62% reduction in finance charges to GH¢17.5 million. The results underscore the company’s ability to leverage debt restructuring and operational efficiency gains.
However, liquidity challenges emerged as a subplot. While cash reserves grew to GH¢440.7 million (up 26% year-over-year), net cash outflows from investing activities totaled GH¢118.5 million, largely due to GH¢108.5 million spent on property, plant, and equipment. Financing activities also saw strain, with GH¢80 million in net outflows linked to loan repayments and dividends.
The balance sheet revealed a 15% increase in total liabilities to GH¢1.5 billion, driven by rising trade payables (GH¢843.8 million) and borrowings. Total assets expanded to GH¢2 billion, supported by a GH¢78 million rise in trade receivables and a GH¢92 million boost in cash holdings. Equity grew 18% to GH¢500.3 million, anchored by retained earnings.
“These results reflect our resilience in a challenging economic environment,” said an unnamed company executive in the report. Analysts, however, caution that persistent inflation and reliance on debt could pressure future profitability. The brewer’s decision to reinvest in infrastructure—evidenced by capital expenditures—signals confidence in long-term growth, but stakeholders will monitor how effectively the company manages its debt obligations and supply chain costs.
Guinness Ghana’s half-year performance positions it as a standout in Ghana’s competitive beverage sector, though sustaining momentum will depend on balancing aggressive growth with financial prudence. Audited year-end results, expected later in 2025, will provide further insights into the company’s fiscal trajectory.
