Guinness Nigeria off to a strong start in Q1 as revenue surge 30%

Guinness Nigeria Plc on Thursday reported a 30% increase in revenue for the first quarter ended 30th September 2017.

The Nigerian unit of British drinks maker Diageo Plc said that sales hit N29.9bn ($82.3m) in the first three months of its financial year, up from N23bn ($63.3m) it recorded in the same period in 2016.

Gross profit for the period grew 24% to N10.4bn ($28.7m) reflecting continued growth within the spirits business as well as benefit of an expanding portfolio, but against the backdrop of lapping the inventory reduction last year, the company said.

Commenting on the results, Peter Ndegwa, Managing Director/CEO, Guinness Nigeria Plc said:

“Although trading conditions continue to be difficult, we delivered a credible performance with a net sales growth of 30% for the quarter. This was against the backdrop of changes in commercial footprint in the prior year as well as benefit of an expanding portfolio.

“We also continue to see value from our focus on Productivity in areas like sales as we empower our teams for success on the frontline as well as driving efficiency in logistics. This has released resources that we are able to re-invest behind our brands,” he said.

The MD added: “A critical part of our strategy is to expand our portfolio and as we continue to innovate with the introduction of new brands and formats, our spending on A&P is critical to driving growth not just for our innovation brands but also for our core brands like Guinness and Malta Guinness.”

Mr. Ndegwa noted that the recently concluded “rights issue” was a huge success and oversubscribed by 116%. The funds raised, he said will be used to pay down debts, particularly the foreign currency loans and help the brewer strengthen its balance sheet.

Net profit for the period rose to N41.4m ($114,049.59), up from -N2.2bn loss recorded in the previous year.

L-R: Legal Director/Company Secretary, Mr. Rotimi Odusola; Chairman, Guinness Nigeria Plc, Mr. Babatunde Savage; Managing Director/Chief Executive Officer, Guinness Nigeria Plc, Mr. Peter Ndegwa; and Non-Executive Director, Guinness Nigeria Plc, Mr. Ronald Plumridge, at the 67th Annual General Meeting which held on Wednesday, October 25, 2017 at the Transcorp Hilton Hotel, Abuja.

$1 = N363

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