Guinness Reports N3.8bn Profit Before Tax

• Guinness Reports N3.8bn Profit Before Tax

Guinness Nigeria Plc reported a four per cent decline in net sales during the first half of the year ended 31st December 2018.

The report filed through the Nigerian Stock Exchange showed a profit before tax rose by N3.8 billion, largely driven by lower finance charges that offset the decline in operating profit. Operating profit declined by N2 billion.

Also, marketing expenses decreased by 10 per cent as the company shifts focus to investment and capitalise on growth opportunities.

The company attributed the drop in net sales to the ongoing pressure in the lager segment. However, the double-digit growth recorded in spirits and sustained growth in Guinness mitigated some of the declines during the period.

Still, gross profit declined by 15 per cent, partly due to the decline in sales and continued inflationary pressure that pushed input cost high.

Speaking on the report, Managing Director/CEO, Guinness Nigeria, Mr Baker Magunda said: “In the half year ended 31st December 2018, Guinness Nigeria delivered results that reflected the continued challenges in the operating environment. While lager remains a challenged sector, Guinness and spirits recorded strong growth, and our non-alcoholic malt drinks grew in the face of intense competitive pressure.”

“This re-affirms our total beverage alcohol portfolio strategy as a key driver of sustainable growth in the market. Looking forward, we will continue to focus on our strategy which is now based on four strategic pillars of growing our premium core faster, delivering our target cost absorption, continue innovating to meet consumer needs and driving productivity harder to improve performance in the business.”

“Whilst we are conscious of the continued challenging operating environment with double digits inflation and pressured consumer spending, we remain optimistic about the execution of our strategy for the remainder of the 2019 financial year”.

Chairman of the Board of Guinness Nigeria, Mr Babatunde Savage added that: “The board is confident that our strategy is sound, and we are making the right investments in the company to ensure long term competitiveness.”