Golden Guinea Breweries Draws Investors Attention, Gains 46%
Backed by three states in the South East, Golden Guinea Brew Plc, saw significant price appreciation on the Nigerian Exchange (NGX) due to strong buying momentum.
The company net loss widened due to negative effects on rising inflation on operating costs on the bottom line. The geographical players saw a strong spike in sales but then its finance costs rocketed, with thin margin.
The company focused on selling brewed product in South East, limiting revenue diversification opportunities. Though Golden Guinea products is well in demand, but price increase amidst household thin wallets impacted volume.
A review of the company’s operating costs revealed that Golden Guinea eased pressure emanated from heavy costs burden by cutting back on marketing and distribution expenses. But its administrative costs spiked
According to data from the Nigerian Exchange, Golden Guinea Brew spiked by about 46% over five trading session to settle at N5.4 on Friday. Equities investors’ appetite for the brewer company picked up massively, and this caused the company shares to become more expensive.
The stock price opened the week at N3.70 but as demand surged, its market price adjusted upward in a rally that lasted for five days in the equities market. The Nigerian Exchange increased the company’s market value to N5.533 billion, spread over its 1.024 billion shares outstanding.
Half Year Earnings
At the end of its first half year earnings results in Sept, Golden Guinea Brew revenue skyrocketed to N170.846 million from N1.48 million in the comparable period in 2023.
But operating costs accelerated faster, reducing positive impacts of sales growth. The company net loss widened from N12.167 million to N29.597 million at the end of second quarter of 2024. Golden Guinea brew said most of its drinks were predominantly from South Eastern geographical location.
Shareholders
Pan Marine Investments Limited owns 75%, which is the largest shares in Golden Guinea Breweries Plc, according to details from its audited financial statement for 2023.
Other Nigerian associations and citizens has 13..26% interest in the company while Floco Verwaltungs-Und controls 2.06% of the company’s shareholdings.
Abia State government own 3.09% interest in Golden Guinea Breweries Plc, followed by Imo State with 1.80%. and Ebonyi State 0.16%. In the same company, Philmontan Nigeria Limited has 3.14% shareholdings and Holsten Baruerei AG Hamburg has 1.50%.#Golden Guinea Breweries Draws Investors Attention, Gains 46%#
