Business News of Monday, 3 May 2021
Source: business24.com.gh
2021-05-03
During the period, cost of producing beverages increased but was slower than sales revenue growth
Guinness Ghana Breweries, the leading total beverage business in Ghana, has posted a 24 percent year-on-year increase in net sales in January to March, which represents the third quarter of the company’s July to June financial year.
According to the company’s unaudited financial statements for the period, the growth in revenue was largely driven by volume growth and a positive price/mix.
During the period, the cost of producing beverages increased but was slower than sales revenue growth.
This resulted in gross profit growth of 66 percent above the same quarter last year.
“We offset inflation and commodity price increases through increased local sourcing and production,” the company said.
Selling, general and administrative expenses in the third quarter increased by 9 percent, driven by increased spending on promotions such as the “Yen Nyin Mbom” Retailer Loyalty Programme.
This resulted in an operating profit of GH¢104.86m for the first nine months of the financial year. Net profit after tax stood at GH¢55.8m for the period, representing a year-on-year increase of 171 percent.