Guinness Nigeria Half-Year (H1) net profit fall by 66%
Guinness Nigeria Plc released its financial results for half-year of its fiscal period ending 31 December 2015. The brewer showed a 66% net profit decline, from N3.39bn in the same period in 2014 to N1.17bn.
The company’s profit before tax (PBT) also fell by 65%, from N4.65bn to N1.65bn. Sales revenue for the period also declined by 10%, from N55.3bn to N49.8bn.
Guinness has made some strategic moves in recent months to shore up its revenue and profits as demand for its premium and mainstream beer brands continue to lag.
In early December the company introduced a new drink called, Guinness Africa Special, a variant of the iconic Guinness stout, albeit made from herbs, spices and ginger made in Africa. Also in Mid-December, the company acquired exclusive distribution rights to Diageo’s premium spirits in Nigeria. And in early January, it acquired distribution rights to United Spirits’ McDowell’s brand, a Diageo company.
These moves were made very late in 2015 and in the current year to have any effect on the company’s current financials.