The Guinness Nigeria Plc has delivered a solid performance in
the year ended 30 June 2018 as revenue increased by 14 per cent from N125.92 billion in
June 2017 to N142.98 billion, reports ITREALMS.
The results, which were released to the Nigerian
Stock Exchange (NSE), also showed improved operating margin, as benefits from
the company’s productivity program more than offset sustained cost pressures.
Commenting on the results, Baker Magunda, Managing
Director/CEO, Guinness Nigeria Plc, said: “Over the year ending 30 June 2018,
despite continued challenges in the operating environment, Guinness Nigeria
delivered a strong performance. Revenue increased by 14% as both beer and
mainstream spirits’ net sales grew double-digit. In beer, Guinness, our largest
brand, saw strong growth as it benefitted from increased marketing activations
around football. Mainstream spirits also delivered double-digit growth driven
by innovation launches and new formats.”
“During the year, gross margin was down 4% to 34%
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 130bps. Marketing spend increased 18%,
ahead of revenue growth, as we continue to invest behind our brands.”
“Improved operating performance combined with lower
finance charges have helped us deliver an overall PAT increase of 249% during
year”.
“The execution of our strategy is working as we
delivered both top line growth and margin expansion while also increasing
investment behind our brands. Looking forward, we will continue to focus on the
three strategic pillars of productivity, expansion of our portfolio, as well as
the execution of the commercial footprint initiatives to drive the business
forward. Whilst we remain optimistic about the execution of our strategy, we
note that the operating and competitive environment is likely to continue to be
challenging in the 2019 financial year.”
Mr. Babatunde Savage, Chairman of the Board of
Guinness Nigeria Plc, said, “Guinness Nigeria has confidence in the Nigerian
economy and will remain a major player in the country by continually investing,
developing capacity and growing a portfolio that most suit the consumers’ needs
for celebration and relaxation. Our aim is to continue to add value to Nigeria
not only through continued investments in local manufacturing and backward
integration, but also through various Sustainable Development projects, enabling
job opportunities and economic inclusion.”
“As a Board, it is heartening to see the impact of the
rights issue coming through in the profitability of the company. The Board is
confident that we are making the right investments in the company to ensure our
long term competitiveness, and continues to support the management in its
efforts to build a business that aims to consistently deliver growth for all
stakeholders.”
Ayo Midele/GEE
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