Guinness Ghana goes green with installation of solar power plant, Diageo’s West African units exhibit stellar performance

WEST AFRICA – Guinness Ghana Breweries has commissioned a solar photovoltaic system on the roof of its brewery in Accra, shifting to use of clean energy in its operations.

The 1,095 kWp solar power plant was installed by CrossBoundary Energy, renewable energy expert in the region, reports Afrik21.

The solar plant will provide up to 19% of the electricity consumed by the subsidiary of the British Diageo Group, supply 1,500 MWh per year, while avoiding 10,000 tonnes of CO2 emissions.

CrossBoundary Energy has signed a power purchase agreement (PPA) with the brewery to operate, manage and finance the maintenance of the solar plant.

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Under the 15-year services agreement, Guinness Ghana will only pay for solar power produced, receiving monthly bills that incorporates all maintenance, monitoring, insurance and financing costs.

CrossBoundary Energy continues to solarise breweries in Africa as it recently launched a 650 kWp solar roof system at the Nigerian Brewery facility.

The solar plant supplies 1 GWh annually to the Ibadan brewery at a significant discount to its current cost of power, while reducing the site’s CO2 emissions by more than 10,000 tonnes over the lifespan of the plant.

The solar plant will supply Guinness Ghana with 1,500 MWh per year, reducing 10,000 tonnes of CO2 emissions over its life span

Diageo’s subsidiaries in Ghana, Nigeria report rise in Q3 revenue

Guinness Ghana has posted a 24% year-on-year rise in net sales January to March 2021, representing the third quarter of the brewer’s financial year.

According to reports by Ghana Web, the alcohol beverage manufacturer registered a rise in cost of production, but it was slower than sales revenue growth leading to jump in gross profit of 66% from the previous corresponding period.

Selling, general and administrative expenses in the third quarter increased by 9%, driven by increased spending on sales and marketing.

This resulted in an operating profit of G104.86m (US$18.1m) from the first nine months of the financial year.

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Net profit after tax stood at G55.8m (US$9.6m) for the period, representing a year-on-year increase of 171%.

Its sister company in Nigeria, Guinness Nigeria, has posted a revenue of N114.956 billion (US$281.25m) for the 9 months ended 31 March 2021, representing a 20% growth over the same period last year.

The company reported a Profit After Tax of N1.838 billion (US$4.5m) in the period under review which represents a 35% over same period last year.

The results show an impressive performance and a significant improvement when compared to the same period last year, a testament to an unwavering commitment to meeting consumer demands as well as the company’s resilience in a challenging operating environment.

“In the 3 months ended 31 March 2021, Guinness Nigeria has delivered a growth of 54% in the face of the challenging operating environment leading to a turnaround in the overall performance of the business in the 9 months of our financial year so far.

“This stellar growth in the third quarter of our financial year is the main driver of the year to date 20% revenue growth,” Mr. Baker Magunda, Managing Director/CEO, Guinness Nigeria Plc said.

The growth is encouraging however considering varying degrees of Covid-related restrictions which remain. Growth was primarily driven by increased off-trade channels sales and at home consumption.

The strong growth is also partly because of a weak third quarter of the previous financial year, when VAT increase took place and COVID lockdown commenced.

Operating profit grew by 46% as productivity savings in distributions and administration costs, and reduced spend due to some existing COVID restrictions mitigated inflation and foreign exchange devaluation impact on cost of sales. Profit after tax increased by 35%.

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