03 MAY 2019
03 MAY 2019 Press release
Guinness Nigeria Plc Reports Q3F19 Results
Key points in relation to the same period last year:
- Revenue declined 4%
- Profit Before Tax decline of N1.6bn
- Growth in Guinness, Malta Guinness and Spirits offset by challenging lager market
- Net finance charge significantly reduced by N1.7bn
Guinness Nigeria Plc, a leading beverage and alcohol Company in Nigeria and a subsidiary of Diageo Plc, today announced its unaudited results for its Quarter 3 period ended 31st March, 2019.
The results which were released to the Nigerian Stock Exchange (NSE), showed that revenue for the period declined by 4% compared to same period last year. Growth in Spirits, Guinness and non-alcoholic Malta Guinness was offset by continued challenging operating environment in lager, as well as the impact of increased excise duty on value spirits. Performance was also impacted by the disruption caused by the General Election.
Cost of sales were flat versus last year while operating profit declined N3.3bn. However, the productivity initiatives around marketing spend and distribution expenses previously introduced mitigated some of the inflationary cost of sales pressure. Profit before tax declined by N1.6bn with operating profit decline partially offset by a reduction of N1.7bn in net finance costs year on year. Net profit after tax decreased by 16% to N4.25bn compared to same period last year.
Marketing spend declined by 4% as we continued to focus our investment behind the biggest growth opportunities Distribution expenses declined on the back of lower top line performance, while administrative expenses increased by 7%.
Commenting on the results for the quarter, Baker Magunda, Managing Director/CEO, Guinness Nigeria plc said, “In the quarter ended 31st March, 2019, Guinness Nigeria delivered results which reflect the continued difficult operating environment. While lager remains a challenged sector, Guinness and spirits recorded considerable growth, and our non-alcoholic malt drinks grew in the face of intense competitive pressure. These developments re-affirm our Total Beverage Alcohol portfolio strategy as a key driver of sustainable growth in the market and we will continue to focus on our strategy.”
“Whilst we are conscious of the continued tough operating environment with double digit inflation and pressured consumer spending, we remain optimistic about the execution of our strategy for the remainder of the 2019 financial year”. Baker Magunda concluded.
On his part, Mr. Babatunde Savage, Chairman of the Board of Guinness Nigeria Plc, said, “The Board is confident that our strategy is sound, and we are making the right investments in the company to ensure long term competitiveness”. He further stated that “the Board continues to support the Management in its efforts to build a business that aims to consistently deliver growth for stakeholders.”
Guinness Nigeria Plc was established in 1950 and listed on The Nigerian Stock Exchange in 1965. With a shareholder base of over 75,000 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, Benin City and Aba. Included in its portfolio are acclaimed brands like Guinness Foreign Extra Stout, Malta Guinness, Harp Lager and Orijin. Guinness Nigeria is a subsidiary of Diageo Plc, a global leader in beverage alcohol with an outstanding collection of brands across spirits, beer categories with acclaimed brands like Johnnie Walker, Cîroc, Baileys, Tanqueray, Gordons Gin and Smirnoff.
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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