Guinness Nigeria Plc said its profit after tax increased by 249 per cent in the 2018 financial year.
The results, which were released to the Nigerian Stock Exchange, showed improved operating margin, as benefits from the company’s productivity programme offset sustained cost pressure.
The firm said in a statement that in the year ended June 30, 2018, its revenue increased by 14 per cent from N125.92bn in June 2017 to N142.98bn.
The Managing Director/Chief Executive Officer, Guinness Nigeria Plc, Baker Magunda, said despite continued challenges in the operating environment, the company delivered a strong performance.
According to him, revenue increased by 14 per cent as both beer and mainstream spirits’ net sales recorded double-digit growth.
He said, “In beer, Guinness, our largest brand, saw strong growth as it benefitted from increased marketing activation around football. Mainstream spirits also delivered double-digit growth driven by innovation launches and new formats.
“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 by 130bps. Marketing spend increased by 18 per cent ahead of revenue growth.
“Improved operating performance combined with lower finance charges helped us deliver an overall PAT increase of 249 per cent during year.”
The Chairman, Board of Directors, Guinness Nigeria, Babatunde Savage, said the company had confidence in the Nigerian economy and would remain a major player in the country by continually investing, developing capacity and growing a portfolio that would appropriately meet the consumers’ needs.
He said the company aimed to continue to add value to the country not only through continued investments in local manufacturing and backward integration, but also through various sustainable development projects, enabling job opportunities and economic inclusion. Copyright PUNCH. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH. Contact: firstname.lastname@example.org