Guinness Nigeria declares N7.1bn profit

Guinness Nigeria Plc, a subsidiary of Diageo Plc, has announced its quarterly results for the nine months period ended 31 March 2015, declaring a profit before tax of N7.134bn and a profit after tax of N5.216bn.

According to the company, it witnessed a 17 per cent increase in net sales for the quarter year-on-year and a 47 per cent growth in operating period when compared to the corresponding period of last year.

Its revenue also rose by nine per cent from N78.018bn to N84.750bn, the results showed.

However, an eight per cent rise in cost of sales and a 13 per cent increase in distribution, administrative and other expenses meant its PBT and PAT were lower than the N7.823bn and N5.943bn, respectively it posted for the same period of 2014.

A statement from the company quoted its Managing Director and Chief Executive Officer, Mr. John O’Keeffe, as saying, “We recorded a strong performance in the quarter driven by the continued success of Orijin and our participation in the value segment of the market through Satzenbrau along with the improving performance of Guinness stout. As a result, we are reporting a double digit net sales growth in the period.”

The statement revealed that high finance costs in a high interest rate environment negatively impacted overall profitability of the company.

However, O’Keeffe said it would continue to invest in its brands and enhance its route to the consumer.

“We will continue to invest in our brands and enhancing our route to consumer. We expect the ongoing currency devaluation to lead to increasing cost pressure and softening consumer demand. In addition, the one-off tax credits in the prior year will not recur,” he said.

The company recently announced a change in the leadership of the company following the promotion of O’Keeffe to the role as President, Diageo Africa. His successor, Mr. Soren Lauridsen will resume in the role in May to commence a handover process with O’Keeffe.

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Source : Punch

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