Guinness Ghana Breweries PLC has shown that resilience can pay off, literally. Despite a 16% dip in sales during the second half of 2025, the brewery contributed a striking GH₵47.5 million in corporate income taxes, nearly doubling last year’s GH₵25.1 million.
The company’s unaudited financials reveal a tale of strategic efficiency and profitability against the tide. While revenue slid from GH₵1.6 billion to GH₵1.3 billion, profit before tax jumped 51%, from GH₵109 million to GH₵165 million, a reflection of disciplined cost management and sharper operational focus.
Deferred Taxes Rising, Investments Fueling Growth
Behind the headline numbers, Guinness Ghana’s balance sheet tells another story: a growing deferred tax liability, rising 18% to GH₵107.8 million as at December 31, 2025, up from GH₵91.6 million at mid-year. This increase could be largely tied to timing differences between accounting and tax depreciation on the company’s GH₵985 million in property, plant, and equipment.
During the six-month period, the brewery invested GH₵80.9 million in new capital equipment, machinery that not only strengthens production capacity but also generates tax depreciation allowances, lowering current tax payments while creating future obligations.
Profitability Amid Revenue Pressures
Even with lower sales, Guinness Ghana’s operational precision shone through. Selling, general, and administrative expenses were slashed by approximately 46%, from GH₵176.6 million to GH₵95.7 million. Combined with improved gross margins, this drove net profit up approximately 40%, to GH₵117.5 million, compared to GH₵83.9 million the year before.
Cash Flow Under Pressure
Yet, the brewery’s cash reserves tell a more cautious tale. Cash and bank balances dipped from GH₵140.5 million at mid-year to GH₵88.8 million by December 31, 2025. The main culprit: a hefty GH₵211.6 million inventory buildup, reflecting preparations for market demand, supply chain considerations, or a strategic stockpile in uncertain times.
The inventory surge, coupled with fully repaid short-term borrowings, down from GH₵5.1 million to zero, contributed to a sharp fall in net cash from operating activities, which tumbled to GH₵37 million from GH₵291 million the previous year. The cash crunch underscores the delicate balancing act between profitability, working capital, and operational readiness.
A Strategic Response to Market Realities
The approximate 16% revenue decline mirrors broader economic pressures on Ghana’s consumer market, where spending on discretionary items like beverages is under strain.
Yet Guinness Ghana’s focus on operational efficiency, margin improvement, and strategic investment ensured that it not only weathered the slowdown but also bolstered government revenues.
