GUINNESS annual profits will be lowered by £60 million in currency translation losses caused by the strong rally of sterling on the foreign exchanges since last August, directors warned yesterday.
The anticipated currency translation losses equate to about 6 per cent of the group's exchange rate exposures of around £1 billion. This is represented by £650 million payments in foreign currency for British exports and £350 million profits in foreign companies.
One of the key adverse currency movements involves sterling's appreciation against the Irish pound. The British currency's year on year rise of 4 per cent against the pound will adversely affect the group's contributions from Ireland. The sterling/pound move is not as great as changes in the value of sterling against the US dollar, Japanese yen, German mark or French franc.
Shares in Guinness fell 5p to 431p on the board's statement.
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