Guinness Ghana Breweries Posts Resilient Financial Performance Amidst Challenging Economic Conditions
Guinness Ghana Breweries PLC, the only total beverage business in Ghana, has demonstrated resilience in the face of significant economic challenges over the fiscal year ending in July 2024 (F24).
Despite the depreciation of the Ghana cedi, rising inflation, and persistent downward forex pressures, the company remains positive about its long-term growth prospects.
At the “Facts Behind the Figures” event, organized in collaboration with the Ghana Stock Exchange, Managing Director, Felicite Nson acknowledged the headwinds encountered in F24.
“This past year presented unprecedented challenges for our business and the wider economy. Depreciating currency, escalating input costs, and soaring inflation placed immense pressure on our operations. However, I am proud of how we responded,” Felicite stated.
Despite these obstacles, Guinness Ghana implemented strategic cost-saving initiatives, maintained its commitment to brand investment, and streamlined processes to mitigate financial pressures. As a result, the company has weathered the storm and is positioning itself for a strong recovery.
“We are optimistic about the future and confident in our renewed focus on innovation and efficiency. As we move into the new fiscal year, we are confident that our operational improvements, resilient teams, and trusted brands will drive sustainable growth,” Felicite added.
Financial Highlights
The business continued to showcase its resilience in the latter half of the financial year, recording growth across key metrics:
Revenue grew by 34%, highlighting the company’s ability to adapt to the volatile environment. Despite challenges in the fiscal year, Guinness Ghana successfully maintained positive cash flow through stringent cost controls.
The company also saw an improvement in profitability, further signalling a recovery from the tough economic conditions of the year.
Leadership Changes
The company also underwent key leadership changes, with the recent appointment of Busola Doregos as the new Finance Director, succeeding Justin Mollel who has subsequently been promoted to Finance Director for Diageo Ireland. Under Busola’s leadership, Guinness Ghana will continue to prioritise long-term financial health, focusing on value creation and prudent fiscal management.
Community and Sustainability Initiatives
Corporate Relations Director, Sylvia Owusu-Ankomah, reiterated the company’s dedication to creating a positive social impact despite the tough operating environment. “In service of our ‘Spirit of Progress’ IQ-year ESG action plan, we remained committed to promoting positive drinking, championing inclusion and diversity, and pioneering grain-to-glass sustainability.
These are critical enablers of our growth ambition and a commercial imperative for our business, underpinned by our commitment to do business the right way.
In fiscal year 2024, Guinness Ghana contributed significantly to its local communities with impactful initiatives such as the provision of clean, potable drinking water to the Kayoro-Saboro community in the KassenaNankana district and the Ullo-Dantie community in the Jirapa Municipality in partnership with WaterAid Ghana under its ‘Water for Life’ Programme.
Over 10 communities within the Northern parts of Ghana have benefitted from this program with more than 250,000m3 of water replenished since 2020. The company’s Local Raw Material Sourcing initiative also positively impacted around 39,776 farmers across communities in the Upper East, Upper West, Northern, Savannah, and Bono East Regions to boost the sorghum and maize value chains.
Outlook for the Future
Managing Director Felicite Nson concluded with a strong note of optimism: “Though the economic environment remains tough, we are entering the next fiscal year with confidence. The foundation we have built, combined with our passion for innovation and commitment to operational excellence, ensures that Guinness Ghana will continue to grow. We are excited for the opportunities ahead and are prepared to deliver strong returns for our shareholders.”
