Guinness Nigeria Plc, a leading beverage and alcohol Company in Nigeria and a subsidiary of Diageo Plc, has announced its Q4 2019 results for the period ended June 30, 2019.
The company, in its financial statement for the year ended June 30, 2019, which was made available to the Nigerian Stock Exchange on Thursday, the revenue declined by 8.03% to N131.49bn from N142.98bn in the previous quarter. Also, Profit Before Tax declined by 28.5% to N7.10bn while Profit After Tax declined by 18.4% to N5.48Bn.
According to the report, Net Assets grew by 1.7% to N89.06bn from N87.59bn as of June 30, 2018, Net finance charge significantly reduced by 46% while operating profit declined by N4.4bn.
Guinness Nigeria Plc declared a dividend of N1.52 per ordinary share of 50 kobo each for the 2018 financial year, which translates to N3.32bn.
The Managing Director, Guinness Nigeria, Mr Baker Magunda, while commenting on the result, stated that the company would continue to work on all operating indices while expecting that the micro and macroeconomic parameters improve.
Magunda said, “Revenue for the year declined by eight per cent, compared to the same period last year on the backdrop of an extremely challenging macroeconomic and competitive environment.
GNPlc is declining in Bottle, but gains are observed in Can format consistent with the
market. GNPlc is declining in Bottle and Can format but growing in PET, albeit slower than the Total Malt Category.
Beer Market Volume and Value Declined
“The cost of the increase in excise duty at a time of stagnant consumer disposable income had to be absorbed by industry players. Despite the tough competitive landscape, we continue to see good growth performance from Guinness, spirits and the malt drinks.”
F20 OUTLOOK AND PRIORITIES
The company stated its outlook and priorities going forward as thus;
Our focus remains on delivering our TBA strategy
We expect a continued challenging macroeconomic, regulatory and competitive environment…
– GDP growth expected to lag population
– Inflation expected to remain double-digit
– Regulatory risks exist especially around taxes
– Potential forex risks especially relating to government rate
– Consumers’ disposable income still pressured
In this environment, our focus is to deliver our TBA strategy – Driving Margin growth…
– Continued focus on segments where we have a right to win: Brand Guinness, Malta, RTDs
– Driving spirits expansion ahead of beer
– Exciting innovations across categories to build the business for the future
– Aggressively driving Productivity to fund investment in our focus brands
– Deliver growth in operating cash
– Capable and engaged Talent pool