(Updates with executive’s comment starting in second paragraph.)
Oct. 17 (Bloomberg) -- Diageo Plc’s Ghanaian unit, a beverage maker in the West African nation, expects pre-tax profit to increase 30 percent in the current financial year as the economy expands.
“The Ghanaian economy will be the fastest growing in the world this year, with growth averaging about 8 percent in the next five years,” Rob Pilkington, the company’s director of finance, said at a meeting in the capital, Accra, today. The beverage industry should grow at a similar rate, enabling Guinness Ghana to post volume growth of between 9 percent and 9.5 percent a year, he said.
Guinness Ghana Breweries Ltd. reported a profit before tax of 462,000 cedis ($283,000) for the year ended June 2011, reversing a loss of 4.4 million cedis the previous year. The company has already cut financial costs, and plans to use some of the cash raised through a 70 million-cedi rights offering to reduce debt.
Guinness Ghana will spend 40 million cedis of that money on cutting debt and 28.5 million cedis for capital investment in infrastructure, water supply and electricity, Managing Director Ekwunife Okoli said today.
The company’s shares were unchanged at 1.51 cedis at 2:15 p.m. in Accra.
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