Guinness Nigeria Plc has reported N70.6billion revenue for the half year ended 31st December 2017.
According to the results which were released to the Nigerian Stock Exchange, the company’s gross profit also stood at N24 billion, representing an increase of 19 per cent and 31 per cent respectively.
The results, however, showed topline growth driven by both spirits and beer reflecting the expansion of the company’s portfolio, and improved operating margins with benefits from productivity initiatives despite sustained cost pressures. The company’s administrative and distribution expenses declined, driven by the company’s continuing focus on productivity.
Commenting on the half year results, Guinness Managing Director/CEO, Peter Ndegwa, said, “In a difficult operating environment, notwithstanding recent signs of economic recovery, we delivered a strong performance with net sales growth of 19 per cent for the half year with growth in spirits and benefits of an expanding portfolio and also against the backdrop of lapping inventory reduction from prior year”.
“We believe in the continued execution of our strategy, allowing us to navigate a tough environment characterized by down trading of consumers as disposable income is subjected to additional pressure.
“We have made significant progress in driving productivity especially in the supply chain and the commercial function, even though cost pressures and inflation takes its toll. In the half year, we have also continued to innovate with increased marketing spend across our portfolio to drive the growth on our core brands and to fund our expanding portfolio and innovation pipeline,” Ndegwa said.
On the successful completion of the rights issue exercise where Guinness Nigeria received approval from its shareholders to raise 40 billion naira from existing shareholders, Mr. Ndegwa said, “The utilisation of the rights issue proceeds leading to significant reduction of the Diageo loan and other borrowings, has resulted into a 32 per cent reduction in the net finance charges and improved our debt to equity ratio from 82 per cent to 2 per cent.”
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.
