Bloomberg News

Diageo’s Ghana Unit to See 27% Revenue Growth in 2012, SIC Says

April 03, 2012

Guinness Ghana Breweries Ltd. (GGBL), a unit of Diageo Plc (DGE), will see revenue rise by 27 percent in the fiscal year through June as economic growth drives demand, SIC Financial Services Ltd. Research Analyst Derrick Mensah said.

The Accra-based brewer’s revenue will climb to 310.3 million cedis ($174 million) from 244.3 million last year, he said by phone today.

“We expect demand for the company’s products to rise as economic growth puts more money in people’s pockets,” Mensah said.

Guinness Ghana makes the stout beer in the West Africa’s second-biggest economy, which grew 13.6 percent in 2011 and is forecast to expand 9.4 percent this year, according to the Finance Ministry. The company also brews Star lager and non- alcoholic beverages.

A 70 million-cedi rights offer in November helped the company pay down debt and invest in infrastructure. The lower costs will push net income to 19.5 million cedis from 533,000 cedis the year before, said Mensah.

In the July to June 2013 fiscal period, revenue growth will expand at a slower pace of 24 percent amid an “unfavorable economic climate, characterized by post election economic stress,” he said. Growth in 2013 is projected at 8 percent by the ministry.

Rob Pilkington, Guinness Ghana’s director of finance, was not immediately available to comment, according to a woman who answered the phone at his office today.

The company’s stock traded unchanged in Accra at 1.67 cedis by 11:29 a.m.

To contact the reporter on this story: Moses Mozart Dzawu in Accra at mdzawu@bloomberg.net

To contact the editor responsible for this story: Emily Bowers at ebowers1@bloomberg.net


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