….Revenue of N131billion
….Profit after Tax of N5.5billion
….Net finance charge significantly reduced by 46%
….Operating profit declined by N4.4bn
Guinness Nigeria, a leading beverage alcohol Company in Nigeria, and part Diageo Plc, a global leader in beverage alcohol., has posted a N5.5 billion Profit After Tax (PAT) in its full year results released to the Nigeria Stock Exchange for the year ended 30 June 2019. The Company earned a revenue of N131billion and Operating Profit for the year stood at N9billion.
Commenting on the result, the Managing Director, Guinness Nigeria Plc, Mr. Baker Magunda, stated that the company will continue to work on all operating indices while expecting that the micro and macroeconomic parameters improve.
Magunda stated, “Revenue for the year declined 8% compared to same period last year on the backdrop of an extremely challenging macroeconomic and competitive environment. The cost of the increase in excise duty at a time of stagnant consumer disposable income had to be absorbed by industry players.”
“Despite the tough competitive landscape, we continue to see good growth performance from Guinness, Spirits and the malt drinks.” Magunda further informed.
A combination of factors, inflation plus prior year royalties and accruals not approved by NOTAP, led to a 17% decline in Gross profit for the organization.
“Marketing spend reduction by 16% and distribution costs initiatives partly mitigated the gross profit decline, thus leading to a fall in operating profit by N4.4bn. Profit before tax decreased by N2.8bn as a 46% reduction in net finance costs further helped to cushion the decline in operating profit.” Magunda explained.
However, despite the challenges, Guinness Nigeria continues to fulfil its commitment to stakeholders particularly as the Company drives its renewable energy and water recovery project for sustainable environment. Recently, Diageo Plc., the parent company of Guinness Nigeria announced an investment of £180m million in renewable energy and water recovery solutions across six cities in Africa, including its two plants in Nigeria.
When completed, the investment will be the largest green investment in a decade in Africa. It demonstrates the strength of the company’s commitment to minimizing environmental impact, as a responsible local manufacturer and employer in Africa.
Commenting on the Results, Mr. Babatunde Savage, Chairman of the Board of Guinness Nigeria Plc, said “As a Board, we are confident that our strategy is sound, and that we are making the right investments in the company to ensure our long-term competitiveness. The Board will continue to support the management in its efforts to build a business that aims to consistently deliver growth for stakeholders”.