NIGERIA – Guinness Nigeria’s revenue for the year ended 30 June 2018 increased by 14% from N125.92 billion in June 2017 to N142.98 billion as the company prioritized sustained investment in its brands during the period.
This helped in delivering both top line growth, margin expansion.
Despite continued challenges in the operating environment, beer and mainstream spirits’ net sales managed double-digit growth.
Guinness beer brand saw strong growth as it benefitted from increased marketing activations around football while the spirits category was driven by innovation launches and new formats.
“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,” said Mr. Babatunde Savage, Chairman of the Board of Guinness Nigeria Plc.
Operating profit increased by 31% to N13.4bn with improved operating margin, as benefits from the company’s productivity program more than offset sustained cost pressures.
Guinness Nigeria increased its marketing spend by 18% and following the implementation of the rights issue, the company realised 54% reduction in finance costs.
Gross margin was down 4% to 34% largely driven by inflationary pressure on our raw material costs but this was offset by reduced distribution and administration costs, resulting in operating margin improvements.
Improved operating performance combined with lower finance charges helped us deliver an overall PAT increase of 249% during year.
The company expects the operating environment to remain challenging and competitive in the 2019 financial year.
Looking forward, Guinness Nigeria 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.
“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,” noted the board chair.