Bloomberg News

Guinness Ghana Gains to 3-Year High on Profit Hope: Accra Mover

June 05, 2012

Guinness Ghana Breweries Ltd. (GGBL), a unit of Diageo Plc (DGE), rose to the highest in more than three years on speculation the company increased profit for the year ending this month.

The shares rose 3.7 percent to 1.95 cedis as of 1:15 p.m. in Accra, the capital, the highest since February 2009.

“We expect a 30 percent increase on what the company made in the nine months through March,” Xorlali Torsu, a stock trader at Accra-based Databank Financial Services Ltd., said by phone today. “The company has been posting a good performance since it raised money through a rights issue to pay debt on its books.”

Torsu said the stock is being considered a safe-haven amid a sell-off as investors turn to Treasury bills.

Guinness Ghana’s profit soared to 17.5 million cedis ($9.2 million) in the nine months through March, from 911,000 cedis in the same period a year earlier. It recorded profit of 533,000 cedis for the full year ended June 2011 from a loss of 4.6 million cedis the year before.

The company raised 70 million cedis through a rights offer in November 2011, of which it earmarked 40 million cedis to pay down debt and the rest for investment in water supply and electricity at the plants.

Guinness’s fiscal 2012 results are scheduled to be out by the second week in July, according to Torsu.

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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