Guinness Ghana Breweries Limited (GGBL) managed to achieve growth in total revenue in its latest financial report i.e., six months report ending December 2016.
GGBL churned out total revenue of GHS 290,452,000 during the period; this represents a 4.31% revenue growth from the GHS 278,445,000 recorded same the period in 2015. High cost of sales during the period under review caused Gross Profit to fall by 6.81% to GHS 73,383,000 in 2016.
Marginal rise of 3.34% in general and administrative expenses contributed to a dip in total operating profit. Operating profit fell by 37.99%; from GHS 19,371,000 in 2015 to GHS 12,022,000 same period in 2016. Loss for the period fell by 72.74%; from GHS 19,979,000 in 2015 to 2015 to GHS 5,447,000 in 2016. Loss attributable to each shareholder at the end of the period was 2 pesewas. Existing financial charges dropped by 49.99% from GHS 36,473,000 in 2015 to GHS 18,240,000 in 2016.
The company, which has recorded losses for 5 consecutive years, is heavily burdened by intercompany loans and accruing interest on the loans. Although the recent rights issue was successful, the target amount set by the company was not met. There still exist intercompany loans yet to be repaid. However, the balance sheet of company has begun to show some healthy signs given that the financial charges on loans have drastically reduced.
GN Analysts expect GGBL to break even in the short term. The company’s latest product [i.e. Orijin drinks] is yet to impact the bottom line of the firm, however, the equity which experienced high sell-off on the bourse in 2016 could offer better performance in 2017.
Trading activity on the bourse ended with 3 gainers (BOPP, GCB and SCB) and 3 losers (GOIL, HFC & SOGEGH) yesterday. SOGEGH topped the trading chart in terms of volume as 276,000 shares worth GHS 215,282.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 11.69% and 16.26 % respectively.
Trading activity was hushed as no shares changed hands on the Alternative market.
HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.
The Cedi GAINED marginally to all the major trading currencies yesterday.
The local currency exchanged at a mid-rate of GHS 4.44790 to the USD, GHS 5.5812 to the GBP and GHS 4.8421 to the EURO.
The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 7.52%.
Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.
