Ghana Breweries Limited fails to pay dividends
Ghana Breweries Limited fails to pay
dividends
Kumasi (Greater Accra) 09 June 2000
The Ghana Breweries Limited (GBL) recorded a deficit in its income surplus account and could not pay dividend for 1999.
Instead, the board has recommended the transfer of 7.9 billion cedis from the capital surplus account to stated capital for bonus issue in the form of one share for every three shares held by shareholders registered in the company's book at the close of business on 30th May, 2000.
Mr. Ishamel E. Yamson, Chairman of the Board of Directors announced this at its second annual general meeting in Kumasi on Wednesday.
He said that the company would spare no effort to ensure a speedy return of the income surplus account into a plus position to allow for the disbursement of dividends to shareholders.
The company's turnover rose to 63.3 per cent, an increase of 18.3 per cent, while financial charges rose by 17 per cent over 1998 as the company relied on short-term funds to support stock-build up.
He said that profit after tax of 3.04 billion cedis made by the company was an improvement of 114 per cent over 1998 after accounting for the sale of properties in Accra and Kumasi, which were surplus to the company's requirements.
Earnings per share rose from 65.5 cedis to 140 cedis.
However, with the 15 per cent drop in the Ghana Stock Exchange All Share Index, the company's share price fell from 2,050 cedis in January 1999 to 1,450 cedis at the end of last year, a decrease of 29.3 per cent.
Mr. Yamson said that the major part of last year was devoted to the first phase of the refurbishment programme for the Achimota Brewery.
A new cooling plant and cellars block improved the capacity of the brewery by 10 million litres, paving the way for the re-launch of ABC lager and variants in December last year, he said.
According to the Board Chairman, the company's share of the beer market stood at 41 per cent as a result of Star beer's excellent performance, adding, that the objective of the company to ensure product affordability and to aid growth of the market was further supported by the government through a 10 per cent reduction in excise duty from 65 per cent to 55 per cent.
Mr. Yamson said in the coming year, improvements expected in all the company's key internal performance measures would be complimented by the support of Heineken.
He said initiatives to safeguard the country's water resources in response to Heineken's Global Environmental and Water policies would be accorded priority and would feature in the company's contribution to environmental protection.
Phase one of the Water Treatment Project would commence in Achimota during the year, he noted, adding that improvement in employee health and safety would continue to be given attention.
GRi…/