dollar bills Guinness Nigeria Plc has recorded profit before tax of N3.792 billion for its half year financial result ended December 31, 2018. The result represents a growth of 7.1 per cent compared with N3.541 billion reported the corresponding period of 2017.
The result showed that tax expenses dropped by 13.98 per cent to N1.213 billion from N1.411 billion in 2017 year, bringing profit after tax to N2.579 billion, a surge of 21.06 per cent against N2.13 billion recorded in the comparable period.
The operating profit fell by 39.92 per cent to N4.658 billion from N6.647 billion in the preceding year while finance costs dropped to N1.536 billion from N4.792 billion, indicating a drop of 67.94 per cent. This resulted in net finance cost dropping to N845.375 million from N3.106 billion achieved in the corresponding period of 2017.
An analysis of the company result indicated that sales revenue for the period dropped by 3.92 per cent from N70.557 billion to N67.796 billion even as cost of sales stood at N47.301 billion compared with N46.562 billion recorded in the prior half year. Gross profit also went down by 14.49 per cent to N20.494 billion against the previous years of N23.994 billion.
Earnings per share surged to N1.18 from N0.97 kobo per share.
A statement by the Director Corporate Relations, Guinness Nigeria Plc, Vols Graham-Douglas explained that the profit for the period was driven by lower finance charges, due to the recently concluded right issue which more than off set operating profit declining in a challenging operating environment.
According to her, “net sales declined four per cent in the half year ended 31st Dec. 2018 and this was primarily driven by the ongoing pressure in the lager segment as a result of the continued challenging operating environment.
“Double digit growth in spirits and continued growth in Guinness mitigated some of the decline in the period.’’
Operating profit, she continued, “declined N2 billion as the productivity initiatives around marketing spend, distribution expenses and administrative expenses mitigated some of the inflationary cost of sales pressure.”