Guinness Nigeria reports N3.8bn PBT in six months

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Stories by Olabode Jegede

Guinness Nigeria Plc has announced that it recorded profit before tax (PBT) amounting to N3.8 billion in its unaudited results for the first half year period ended December 31, 2018.

According to a filing obtained from the Nigerian Stock Exchange (NSE)’s website, the company’s PBT soared by 7.1 per cent to N3.79 billion driven by owner finance charges, as a result of the rights issue which more than offset operating profit decline in a challenging environment.

However, the company’s gross profit declined by 15 per cent as a result of the net sales decline as well as inflationary pressure on its raw materials and lower fixed absorption while operating profit fell by N2 billion as the productivity initiatives around marketing , distribution expenses and administrative expenses which mitigated some of inflationary cost of sales pressure.

Speaking on the results, Managing Director, Guinness Nigeria Plc, Baker , said that the result reflects the continued challenges in the operating environment.

Magunda revealed that although the lager remains a challenged sector, Guinness, Spirits recorded strong growth and the company’s non alcoholic malt drinks grew in the face of intense competitive pressure.

According to him,  “these results re-affirm our total beverage alcohol portfolio strategy as a key driver of sustainable growth in the market”

The Guinness boss thereafter reiterated that Guinness Nigeria will continue to focus on its strategy which is based on growing it’s premium core faster, delivering target cost absorption, churning out new innovations to meet consumer needs and driving productivity to improve performance in the business.

“we remain optimistic about the execution of our strategy for the remainder of the 2019 financial  while we are conscious of the challenging environment”, Magunda said.