Guinness Marks Continuous Progress after Profit Upsurge
One of the foremost brewing giants in Nigeria, Guinness Nigeria Plc has expressed confidence about its growth after it recorded a five per cent growth in profit for the six months period ended December 31, 2014.
A recent release from the company he half-year period, noted that its revenue rose from N52.757bn in the corresponding period of 2013 to N55.267bn. The unaudited results also showed that the company’s gross profit was up by approximately two per cent from N25.286bn to N25.754bn.
The release also quoted Mr. John O’Keeffee, the Managing Director and Chief Executive Officer, Guinness Nigeria, saying, “We experienced improvement in performance during the half as revenue for the second quarter showed a growth of 13 per cent compared to minus six per cent in the first quarter. The negative gearing due to mix drove a net sales growth of five per cent”.
The results, which were released to the Nigerian Stock Exchange, also showed a marked increase in one-off costs, administrative and marketing expenses.
The Finance and Strategy Director, Guinness Nigeria, Mr. Ron Plumridge, said, “Some of the key cost drivers over the period are the significant investments made to support our route to consumer optimisation and will support future growth.”
However, he admitted that there were a number of challenges and uncertainties which the company had to deal with in order to achieve its growth objectives.
“These strategic investments, which have been classified as one-off costs in the income statement, have depressed operating profit for the first half. In the second half, we plan to sustain volume growth but recognise there are significant external uncertainties we will need to continue to manage,” He said.
In the period under review, Guinness Nigeria, was, however, unable to record improvements in its profit before tax and profit after tax.