GBL in impressive half-year performance

Accra, July 11, GNA - Ghana Breweries Limited (GBL) posted an impressive performance in the half-year ending June 30, 2003 with turnover growing by 59 per cent.

The company, which hitherto had suffered losses due to consistent fall in the value of the cedi and huge payment of financial charges to its creditors, made a gross profit of 8.1 billion cedis as against 2.2 billion for the same period last year.

Mr. Segun Adebanji, Managing Director of GBL, told Financial Journalists in Accra on Friday that the turn around was management's rationalization of GBL's cost base, increased productivity and efficiency.

He singled out the support of five million euros that GBL received from Heineken, majority shareholder, and the conversion of 7.5 million euros inter-company debt into equity as factors leading to the sharp decline in interest charges and foreign exchange losses.

Interest charges dropped from 5.1 billion cedis in the first half of last year to 800 million cedis this year while the company recorded an exchange gain of 3.5 billion cedis in the first six months of 2003 compared to a loss of 6.7 billion cedis for the same period last year. Net profit for the first half of this year fixed at 10.5 billion cedis compared to 9.6 billion cedis for the same period last year. Mr Adebanji said net profit as a percentage of turnover improved from negative 9.3 per cent negative to 10.9 per cent.