GIHOC distilleries install modern machines

GIHOC Distilleries Company Limited, producers of alcoholic and non alcoholic drinks in Ghana, is expanding and installing modern state of the art equipment for production, in line with the International Standard Organisation (ISO) requirements.

The company is installing an automatic bottle washing plant, modern product preparation and high capacity raw water storage facility capable of storing 250000 gallons of water, power distribution and standby generator to infuse efficiency of operations.

It is also installing automatic packaging lines together for Pet and Pouch (Tot) production.

The projects are expected to be completed next year and production is also expected to quadruple to meet the demands of consumers and the international market to improve shareholders return.

The company is also expanding into the West African Sub-Region and has registered three of its products with the Nigerian National Agency for Food and Drug Administration and Control (NAFDAC), which are now marketed in Nigeria. It has also entered the Ivorian market.

The company has introduced some of its popular alcoholic brands into new packaging – Pet Bottles (G-Pet) and Pouches (G-Tot).

Since the new Board of Directors assumed office, the company has paid dividends to Government of Ghana annually. Between the year 2010 and 2012, the company paid Ghc18.397 million as excise duty and VAT to the government. Corporate Tax paid also amounted to Ghc2.013 million over the same period. Projected Tax payable for the year 2013 is in the region of Ghc1.5 million.

In a report of the annual general meeting of the company, The Managing Director, Ms. Kay Kwao Simmonds, said performance in all indicators have been satisfactory in spite of some challenges in the financial year review which is in its third year of their five year strategic plan.

She said profit before interest and tax has increased from Ghc3.113 million the previous year to Ghc3.760 million. Net profit for the year under review has also increased from Ghc2.222 million to Ghc2.245 million. Net profit in terms of turnover has however decreased from 8.55% to 6.28%.

She hoped that very soon the company would commission its new distillery with modern state-of-the-art production plant paving way for the company to take advantage to stay in competition and maintain its first place in the standards, as well as its quality attested brands.

The Board Chairman of the Company, Dr. Kwame Asante, was delighted that the year 2012 increased sales revenue in the midst of constraint in production capacity due to the ongoing expansion and modernization of the company.

He said the performance demonstrated the company’s ability to deliver substantial value for the shareholders and the market, hoping to deliver substantial increases in production and profits when the modernization and expansion is completed.