Kumasi (Ash), - 11 June The beer market has shown significant decline in the first quarter of this year, Mr. Ishmael Yamson, Chairman of the Board of Directors of Kumasi Brewery Company Limited (KBL), said today. Besides the decline, he noted, there has been an escalating competitive pressure within the industry which is operating in a difficult environment.
Reviewing the activities of the company for 1996 at its 21st annual general meeting in Kumasi, Mr. Yamson said all these call for innovative and speedily executed programmes. He said in line with the KBL's brand policy, it will remain committed to maintaining the long established excellent product quality strategy, focusing on proven equity-building activities to strengthen consumer loyalty. The Board Chairman said this will be backed by improved customer service, extensive distribution, significant levels of marketing and some capital investments to ensure adequacy of production capacity and safeguard its competitiveness.
Mr. Yamson announced that the company's turnover in 1995 from 11.6 billion cedis to 20.7 billion cedis in 1996, showed an improvement of 31 per cent over the previous year's of 1.25 billion cedis. The size of the profit after tax was affected to a large extent by excessive increase in financial charges as a result of high interests paid on overdrafts, he said. Mr. Yamson said the directors have recommended the payment of 492 million cedis or 82 cedis per share which is 30 per cent of the net profit and represents 31 per cent improvement over the 1995 figure.
On the performance of the company on the Ghana Stock Exchange, he said from 605 cedis per share at the beginning of last year, the share price reached 660 cedis at the end of December, representing an appreciation of 9.1 per cent compared to the 14 per cent registered in the market. The Board Chairman said as at the end of April, 1997, the price had appreciated by a further 21 per cent compared to an increase of 0.62 per cent in the All-Share Index.
Mr. Yamson said the completion and commissioning of an additional reservoir and improvement in the supply of town water significantly reduced the effect of the perennial water shortage and its impact on the company's business during the year. The company's new product development initiatives led to the successful introduction of low sugar ''Amstel Malta'' which made a major impact on the non-alcoholic malt drinks market. Mr. Yamson said with the support of Heineken Technical Services (HTS), all arrangements were completed to ensure its entry into the economy segment of the market with draught beer.
An Environmental Management Plan document covering the company's operations and future plans has been concluded and is being reviewed by the authorities. Substantial investment was also made to protect workers and to ensure their safety and comfort while stepped-up good housekeeping practices provided a sound environmental backdrop for its operations, he added.
