Guinness Ghana grows profit to GH¢179.4 million as cost cuts offset 14% revenue drop

Guinness Ghana Breweries Plc recorded an improvement in profitability for 2025, even as revenues declined sharply, reflecting tighter cost controls and improved operating efficiency amid a challenging consumer environment.

According to the company’s unaudited financial statements for the six months ended December 31, 2025, revenue fell to GH¢1.34 billion from GH¢1.60 billion in the same period a year earlier, representing a 14 per cent decline. 

The company attributed the drop primarily to lower sales volumes, a trend consistent with broader pressures on consumer spending.

Despite the contraction in turnover, Guinness Ghana succeeded in lifting its operating profit to GH¢179.4 million, up from GH¢126.6 million a year earlier. 

The company’s internal commentary noted that “the operating profit is GHS 135.5m which is a 18% increase compared to the same period last year,” highlighting the impact of reduced cost pressures and tighter expense management.

Cost of sales declined by 12 per cent to GH¢1.07 billion, largely as a result of lower raw material usage linked to the volume decline. Selling, general and administrative expenses were also significantly reduced, falling to GH¢95.7 million from GH¢176.6 million, strengthening margins and cushioning the impact of weaker revenues.

Profit before tax rose to GH¢165.1 million from GH¢109.0 million, while profit after tax climbed to GH¢117.5 million, compared with GH¢83.9 million in the previous year. 

The company reported total comprehensive profit of GH¢117.5 million for the period, with no other comprehensive income recorded.

On the balance sheet, total assets increased to GH¢1.98 billion as at December 31, 2025, up from GH¢1.79 billion at the end of June. Inventories expanded sharply to GH¢639.3 million, reflecting stock build-up during the period, while cash and bank balances declined to GH¢88.8 million from GH¢140.5 million six months earlier.

Total equity strengthened to GH¢863.6 million, driven by higher retained earnings, which rose to GH¢587.5 million following the interim profit. The company paid a final dividend of GH¢5.7 million during the period, according to the statement of changes in equity.

Cash flow from operating activities, however, weakened significantly. Net cash generated from operations fell to GH¢37.0 million from GH¢291.0 million in the comparable period, largely due to increased inventories and movements in working capital. After capital expenditure of GH¢80.9 million and financing outflows, cash and cash equivalents declined by GH¢70.0 million over the six months.

The results were released through the Ghana Stock Exchange on February 9, 2026.