- 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 N131 billion and Operating Profit for the year stood at N9 billion.
Commenting on the result, the Managing Director, Guinness Nigeria Plc, Mr Baker Magunda, stated that the company would 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 the 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 N2.8 billion 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 a sustainable environment. Recently, Diageo Plc., the parent company of Guinness Nigeria announced an investment of £180 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.”
About Guinness Nigeria
Guinness Nigeria Plc was established in 1950 and listed on The Nigerian Stock Exchange in 1965. With a shareholder base of over 68,000 shareholders, it is also one of the foremost quoted companies in Nigeria. The company built its first brewery in Ikeja in 1962, and currently has facilities in Ogba and Benin City. Guinness Nigeria, part of the world’s largest drinks company, Diageo Plc., is the only Total Beverage Alcohol company in Nigeria with a wide portfolio of brands catering to non-alcohol and alcohol drinkers, with non-alcoholic beverages, Spirits, Lager & Beers. Some of its well-known and well-respected brands include Malta Guinness, Guinness Foreign Extra Stout, Guinness Gold, Orijin Bitters, Orijin Zero, Dubic Malt, Harp, Satzenbrau Dark Ale, Mr Dowell, Snapp, Gordons Moringa, Smirnoff Ice, Smirnoff Vodka, Johnnie Walker, Baileys Delight and Ciroc.
With a very clear ambition – “To be the best performing, most trusted and respected consumer products company in Nigeria”, Guinness Nigeria delivers on its sustainability and responsibility commitments which are focused on three areas; alcohol in society, building thriving communities and reducing environmental impact. The company continues to be a champion for responsible drinking and community development. For the past 14 years, Guinness Nigeria has run its ‘Ember Months’ campaign in partnership with the Federal Road Safety Corps (FRSC) and the Ministry of Transportation, aimed at educating consumers on the dangers of drinking and driving. Also, via its flagship ‘Water of Life’ scheme, the company has delivered 35 water facilities across 24 states in Nigeria. These facilities have helped provide clean drinking water for over 1.5 million Nigerians. Guinness Nigeria also established the Lagos University Teaching Hospital Guinness Eye Centre in 1993, and Guinness Eye Centre Onitsha in 1984. Since the establishment of these eye centres, Guinness Nigeria has continued to support these institutions through the donation of eye equipment.
For more information about Guinness Nigeria, our people, our brands, and performance, visit us at www.guinness-nigeria,com. Visit our global responsible drinking resource, www.DRINKiQ.com, for information, initiatives, and ways to share best practice.
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