Guinness Nigeria Grows Profit After Tax By 249% In Q

Guinness Nigeria Grows Profit After Tax By 249% In Q

Guinness Nigeria Plc has declared a growth of 249.2 per cent in its profit after tax for the financial year ended June 30, 2018. The results, which were released to the Nigerian Stock Exchange (NSE), showed improved operating margin, as benefits from the company’s productivity program more than offset sustained cost pressures. The company’s profit after tax grew to N6.718 in the period under review from N1.924 billion in the comparative period of 2017, while earnings per share stood at N3.10. Revenue increased by 13.5 per cent from N125.92 billion in June 2017 to N142.98 billion in June 2018, cost of sales up by 21.6 per cent to N94.350 billion as against N77.605 billion in 2017, resulting to a gross profit of N48.625 billion from N48.315 billion. Marketing spend increased 18 per cent
demonstrating sustained investment behind Guinness Nigeria’s brands, while operating profit increased by 31 per cent to N13.4 billion. Finance costs went down by 54 per cent following the rights issue. Speaking on the results, managing director/ CEO, Guinness Nigeria, Baker Magunda, said, “Despite continued challenges in the operating environment, Guinness Nigeria delivered a strong performance. Revenue increased by 14 per cent as both beer and mainstream spirits’ net sales grew double-digit. “During the year, gross margin was down four per cent to 34 per cent largely driven by inflationary pressure on our raw material costs. However, this was more than offset by reduced distribution and administration costs and resulted in operating margin improving 130 basis points. Marketing spend increased 18 per cent, ahead of revenue growth, as we continue to invest behind our brands.”

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