Categories: Business

Guinness Nigeria posts 110% increase in profit

Guinness Nigeria Plc, a subsidiary of Diageo Plc, in its audited results for the period ended 30 June, 2021, has posted a 110 per cent increase in profit after tax.

According to the Brewer’s audited results released to the Nigerian Exchange Group (NGX) at the financial year-end indicated that revenue increased 54 per cent to N160 billion as against the prior period of 2020.

Operating profit increased by  177 per cent benefitting from lapping significant impairments in the prior year and reduced administrative expenses arising from productivity savings.

Speaking on the announcement, Mr Baker Magunda, Managing Director/CEO, Guinness Nigeria Plc said: “The performance of fiscal 2021 showed that the business delivered growth despite the challenging external environment characterized by COVID-19 restrictions and high inflation.

“Revenues grew double-digit across all key categories, particularly our strategic focus brands Guinness, Malta Guinness as well as our local and imported spirits. This was supported by improved product mix and headline price increases in key brands. Gross margins declined by 3 per cent driven by inflationary pressure, a shift towards more expensive can products given at-home consumption trends, and forex devaluation impacting some materials,” Magunda explained.

The company however revealed that its net finance costs remained on similar level as last year despite the lower debt position, due to the devaluation of Naira impacting the foreign currency-denominated trading balances.

“Tax was impacted by a one-off historic charge. Profit before tax increased to N5.8 billion, a 134 per cent growth as against same period last year; and Distribution expenses increased by 22 per cent versus last year behind volume growth due to efficiency improvements across distribution channels,” Managing Director/CEO, Guinness Nigeria Plc, Baker Magunda said.

The Chair of the Board of Guinness Nigeria Plc, Dr Omobola Johnson assured that the Board would continue to support Management in its efforts to sustain global best practices aimed at consistently delivering business growth for stakeholders.

“We remain confident that the strategy is comprehensive and robust, and that we are making the right investments in the company to ensure our long-term competitiveness,” she said.

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