Kumasi, July 8, GNA- Ghana Breweries Limited (GBL) recorded a net profit of 3.8 billion cedis in the first quarter of 2003, Mr Martin Eson-Benjamin, Chairman of the Board of Directors of the company, said on Tuesday.

Addressing the fifth annual general meeting of the shareholders he said 16.8 billion cedis had been invested in plant and equipment. These investments, he said, were needed to enhance production efficiencies and enlarge cost saving to improve product quality and ensure overall productivity.

Mr Eson-Benjamin said the Value Added Tax (VAT) and excise duties paid to the government was 82.5 billion cedis as compared to 75.2 billion cedis in 2001 and represented an increase of 9.7 percent. Financial charges declined from 11.4 billion cedis in 2001 to 9.4 billion cedis in 2002, net turnover was 136 billion cedis in 2002 representing an increase of 24 percent over 2001.

"Operating profit improved significantly from negative 2.8 billion cedis in 2001 to 6.3 billion cedis last year. This reflected strategies implemented by management to control costs and improved sales revenue," he said.

Mr Eson-Benjamin said the strong performances at the turnover and operating profit levels coupled with the lower interest charges notwithstanding, net loss increased from 10.6 billion cedis to 12.6 billion cedis.

This, he said, was attributable to the 36 percent depreciation of the cedi against the Euro during the year that led to significant exchange losses on inter-company debts.

Cash flow improved as a result of five million Euro deposits against shares paid by Heinenken, the parent company in December 2002. "Euro three million of that amount was used to pay off a major part of overdrafts and other short-term loans contracted from some local banks", he said.

He said in 2002, the company started implementing the first phase of a restructuring plan and set aside three billion cedis in addition to a 5.4 billion cedis booked in 2001 for redundant staff.

"We continued our focus on building team spirit and developing employee core competencies through various training programmes to sustain the trend of positive results."

The Chairman said the company would continue to discharge its social obligations to civil society as part of its corporate social responsibility programme with special interest on water conservation, environmental protection, education and health care.