Guinness Nigeria targets innovation as profits fall

NIGERIA – Guinness Nigeria Plc has announced a revenue increase and a quarter one loss as the tough economy in Nigeria impacts the brewer.

Releasing the company’s financials for the end of the first quarter of its year ended 30 September 2016, the maker of Guinness reported a revenue increase of 6%, driven in part bcontributions from itnew mainstream and international premium spirits business as well as thcontinuing growtof its value brands.

However, in its financial statements released tthe Nigerian Stock Exchange, thcompanreported a Loss After TapositiooN2.2bn (about US$7.7billion) during thperiod.

The environmenremaintough buwhave seecontributions from our mainstream and international premium spirits brands as well as continuing growth of Satzenbrau.

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These werthkey driverof the 6% revenue growth recorded for thquarter,” said Peter Ndegwa,ManaginDirector/CEO, of the company, in spite of continuinchallenges in the operating environment in the country.

Nigeria’s economy has continued to face headwinds caused by falling oil revenues, in which the country relies for its forex supplies, and an insurgency in the northern part of the country.

“Oucost of sales was impacteby the high inflationary environment ancontinuing currencdevaluation leadinto a reduction in operatinprofit.

Thhigher financcost in thquarter is due tthe impacof unrealized foreign exchange losses as a result of thcurrency devaluation”.

The company has plans to drive performance in to the rest of the year investing in its brands and innovation, says the CEO.

“Goinforward, innovation will continue tbe a big part of our strategy us, as we look to deepeour participation in the mainstream and value segments.

We will also continuto invesbehind our brandwith a key focus on building the right portfolio for future growth and reshaping our organizatiottake advantage of what is likely tcontinutbe a challenging markeithe shorto medium term,” he added.

Investing into the future, the company recently announced a further £12million of investments intNigeria as it plans to commission a new spirits manufacturing line in itBenin planithcominweeks.

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