GBL Records Losses In Year 2001

Ghana Breweries Limited, bottlers of Star Beer, Guilder, ABC and Amstel Malta has recorded a 2.94 billion cedi decline it its operating profit for 2001. The company’s operating profit before foreign exchange losses in year 2000 was 6.97 billion cedis. The decline in operating profits is in spite of the net turnover of 109.5 billion cedis in 2001, an increase of 23 per cent compared to 2000.

Mr. Martin Eson-Benjamin, Chairman of the Board of Directors of GBL, who made this known in his 2001 Annual Report at the 4th General Annual Meeting of Shareholders of the Company said operating margin also fell from eight percent to 2.6 percent in 2001.

Interest charges rose by 148 percent from 4.6 billion cedis in 2000 to 11.4 billion cedis in 2001 and as a result, net loss increased from 3.5 billion cedis in 2000 to 10.6 billion cedis this year.

"Our results were worsened by the impact of external pressures, coupled with the effect of a lower volume, lower margins and higher bank borrowing", he said. Mr. Eson-Benjamin said some of the capital investments planned for the year 2001 were delayed in view of the weak financial position of the business, adding that Valued Added Tax (VAT) and Excise Duty paid to the government treasury was 75.2 billion cedis compared to 59.8 billion cedis last year representing 25.7 percent increase.