Guinness Nigeria, a leading beverage and alcohol Company in Nigeria, records N1.2bn revenues in Q3 of 2018. This shows that things have been rosy for them.
Nigerian Stock Exchange (NSE), in an unaudited result its first quarter which ended 30 September 2018, released the profit before tax which increased to N1.2bn.
This is determined by lower finance charges, as a result of the rights issue.
Besides, the company’s net sales declined by 6% in three months.
This is as a result driven by increased competition in the worth of beer segment, that more than offset growth across the rest of the business.
The gross profit degenerated by 12% as a result of inflation pressure on our raw material costs.
Mr. Baker Magunda, Managing Director/CEO, Guinness Nigeria Plc said, “In the three months which ended 30 September 2018 Guinness Nigeria distributed results that reflected the continued challenges in the operating environment and improved competition in beer group.
Inflation pressure on our raw material costs and volume drops both gross profit and operating profit.
Profit before tax however benefitted from a significant reduction in net finance charges as a result of the rights issue.
We will continue to concentrate on the three tactical pillars of productivity, expansion of our portfolio, as well as the execution of the commercial footprint initiatives to improve performance in the business.”
Mr. Babatunde Savage, Chairman of the Board of Guinness Nigeria Plc, said, “The Board is confident that we are making the right investments in the company and our brands to ensure our long-term competitiveness.”