The shareholders of Guinness Ghana Breweries Limited (GGBL) have approved a GH¢180 million rights issue to generate additional funds to return the company to optimal capital structure.
This is expected to reduce the company’s interest burden and provide GGBL with the financial flexibility to invest in future value as well as create opportunities to return the company to a position where it can pay dividends.
The approval was given at the company’s 43rd Annual General Meeting (AGM) in Kumasi to update shareholders on the company’s financial performance for the year ended, June 2015.
The Chairman of the Board of GGBL, Mr David Harlock, outlined a number of challenges faced by the company, and the industry as a whole, during the period under review.
That, he said, included erratic supply of utilities, a weakening economy characterised by increased rate of inflation and the fluctuation of the cedi against major international currencies.
“The board and executive management, however, remain confident of the future prospects for the business,” he added.
The board chairman reiterated that the company remained one of the best performing consumer products companies in the world.
“We will continue to pursue this ambition aggressively in areas such as strengthening and accelerating our premium core brands, innovating at scale to meet new consumer needs, driving out costs to invest in growth and guaranteeing plans with the right people and capabilities,” he added.
He said the company was beginning to see positive results from its focus areas and added: “We are confident that with the support of shareholders, we will grow the business back to profitability.”