GUINNESS Nigeria Plc, the nation’s leading beverage manufacturer and a subsidiary of Diageo, today announced its financial results for the first quarter ended 30 September 2014.
The results showed an increase in profit before tax of 6% year on year. The results also showed a marginal increase in admin expenses largely driven by the company’s recent investment in transforming its route to consumer infrastructure.
Speaking to the results, Mr Babatunde Savage, Chairman, Guinness Nigeria Plc, said the board is optimistic of sustaining this trend for the rest of the financial year. “We are pleased to report a year on year increase of 6% in our profit before tax figure. The board is confident that this heralds a return to growth for the company as we begin to reap the dividends from the investments that we have made in areas like our capacity expansion and route to consumer infrastructure,” he said.
Mr. Seni Adetu, the Managing Director/Chief Executive Officer, Guinness Nigeria Plc said “We are pleased to announce this turnaround in our financial results. In the period under review, we have remained focused on our strategic imperatives and this has translated into the increase in our profit before tax. Our cost of sales declined by 12% YOY with gross profit remaining flat in the quarter. We are also reporting a significantly higher tax number as a result of the tax incentives which was reflected in the numbers for the first quarter of the previous year following approval from the NIPC.
This will not recur going forward. Overall, we feel positive that with our core brands and great innovation backed by our strategic investments, we will continue to drive both top and bottom line growth.”
Guinness Nigeria was established in 1962 and was the first country to have a Guinness brewery built outside of the British Isles. Nigeria now represents the largest market for Guinness by Net Sales Value in the world. Products from the brewer’s stables include Guinness Foreign Extra Stout, Malta Guinness, Harp Lager beer, SNAPP, Orijin Bitters and ready-to-drink amongst others.
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