Guinness Posts N1.96 Billion Profit Before Tax in Three Months

Guinness Nigeria Plc has recorded N1.96 billion in profit before tax for its first quarter ended September 30, 2014.

This represented six percent growth over N1.87 billion posted in the same period in 2013.

Also, the gross profit for the period rose to N10.55 billion from N10.46 billion recorded in equivalent period in 2013, while total assets stood at N133.84 billion as against N132.33 billion posted in 2013. 

There was also a slight reduction in the cost of sales with the figure falling to N10.49 billion from N11.95 billion recorded in first quarter in 2013.

The results also showed a marginal increase in admin expenses to N2.53 billion from N2.39 billion, largely due to the company's recent investment in transforming its route to consumer infrastructure.

Commenting on the results, Mr Babatunde Savage, Chairman, Guinness Nigeria Plc, said the board is optimistic of sustaining the trend for the remainder of the financial year. "We are pleased to report a year on year increase of six percent 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."

Mr. Seni Adetu, 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 percent year-on-year, 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 Nigerian Investment promotion Commission, 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.