GBL unable to pay dividends

Kumasi (Greater Accra) 24 June ?99

The Ghana Breweries Limited (GBL) could not pay dividends to its shareholders despite a profit of 1.42 billion cedis.

Mr. Ishmael Yamson, chairman of the Board of Directors of the Company, announced this at its annual general meeting in Kumasi on Wednesday.

He said since the income surplus account after the merger between Kumasi Brewery Limited (KBL) and Achimota Brewery Company Limited (ABC) read negative, the Board could not legally recommend the payment of dividend.

Mr. Yamson said, however, that realising profit in the first year after a merger with ABC, a company with "significant deficit", was a commendable feat.

"Your Board is optimistic about the prospects for continued volume growth and profit improvement, which should enable the company to resume payment of dividends as soon as it is practicable to do so", the Board Chairman told the shareholders.

He said despite the impact of the energy crisis, intensified competition among the three national breweries and the challenges posed by the management of the merger, the financial performance after the first year of GBL was commendable.

"A strong push for growth in our major lager brands, effective cost management to protect margins and the improved level of productivity culminated in 31 per cent growth in turnover", he said.