Guinness Nigeria Plc said that its revenue and profit continued to face market challenges in the first half of the year.
The drinks company reported a tepid rise in sales for the six months to the end of December. Sales rose by 1% to N68.3bn from N67.8bn in the same period in 2019.
The growth was driven by double-digit expansion in brand Guinness and its spirits portfolio.
The company blamed the marginal sales rise on the effect of the excise duty increase on sales and the absence of pricing opportunities in the half.
Operating profit fell by 23% to N3.6bn due in part to the marginal sales increase.
Net Finance cost surged 92% in the first half to N1.6bn as a result of a 144% increase in the first quarter. Net finance cost in Q2 was 39%.
Net profit fell by 49% to N1.3bn from N2.6bn in the previous year.
Commenting on the results, the company said its board remains confident that the results, especially Q2 results indicate that its strategy is working and that it is making the right investments to ensure long term competitiveness.