Nigerian Brewer, Guinness Nig Plc released its Q2 Unaudited Financial Statement, revealing a 50.83% growth in revenue from N72.35 billion to N109.12 billion in the current period. The breweries company reported a profit after tax of N8.82 billion from a loss position of N317.42 million in the corresponding period of 2020.
The positive result is on the back of the inflationary pressures which Fast-moving consumer goods benefitted from during the period, especially during the festive season. Also, considering that the company makes most of its revenue in Nigeria.
The major driver of the company’s performance is the revenue from Nigeria and the sale of by-products. Revenue from Nigeria made up 99% of the company’s total revenue, appreciating by 51.04% from N71.53 billion to N108.04 billion. While revenue from export stood at N1.09 billion.
Key highlights of the report
- The sale of by-products during the period grew by 161.31%, delivering an income of N424 million for the six months.
- Marketing and Distribution expenses surged 77% growing from N10.6b a year earlier to N18.8b suggesting aggressive marketing and distribution was a major driver of sales
- The brewery also generated N791 million proceeds from the disposal of property, plant, and equipment.
- Net profit for the period was subdued by some expense line items as revealed in the income statement. Marketing and Distribution expenses grew by 76.10%, from the prior-year period, subduing the growth in net profit for the period.
- Personnel expenses as well amounted to approximately N6.36 billion in the period under review, as contained in the financial statement.
- During the quarter, other expenses that weighed down the net profit were taxation expenses which appreciated significantly by 902.76%.
- The company’s net assets increased by N9.32 billion from N74.29 billion recorded as at June 2021 to N83.61 billion in the period under review. Total assets, however, stood at N199.70 billion.
- Guinness Nig Plc is currently trading at N46.75 per share and its market capitalization stands at N2.19 billion as at Thursday, January 27, 2021. Year-to-date performance shows that the share price of the company has gained 19.87%.