Guinness Nigeria Renewed demand strength to prop Revenue in Q1

Must Read

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

Guinness Nigeria had a very tough close to its FY’20, dealing with weak demand in the last quarter as well as significant impairments in the period.

Revenue for the beverage producer declined 72% y/y in Q4’20, dragging FY’20 Revenue down 21% y/y to ₦104.4 billion.

Guinness Nigeria Renewed demand strength to prop Revenue in Q1

For Q3, we expect a much improved, albeit still slow rise in volume rollout, following a gradual increase in patronage of bars and other alcohol sale points. Thus, we foresee an 8.1% y/y decline in Guinness’ Q1’21 Revenue to ₦24.7 billion.

Driven by the ongoing spirits play strategy, we foresee a slight 0.6ppts y/y improvement in the Gross margin to 30% in Q1, as spirits have higher margins than lager.

- Advertisement -

Although Guinness increased its borrowings (+45% between Q1 and Q2), Interest expense declined by 39% for the quarter. Thus, we expect that this will set the tone for the first quarter of the FY’21 and as such we expect the company’s finance costs to remain stable in Q1’21.

Finally, we expect a PAT of ₦1.0 billion for the quarter (Q1’20: -₦0.3 billion).

Guinness Nigeria Renewed demand strength to prop Revenue in Q1
Guinness Nigeria Renewed demand strength to prop Revenue in Q1

- Advertisement -
Guinness Nigeria Renewed demand strength to prop Revenue in Q1 - Brand SpurGuinness Nigeria Renewed demand strength to prop Revenue in Q1 - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Read Also:  MultiChoice may be forced to cut DStv prices in 2019
Guinness Nigeria Renewed demand strength to prop Revenue in Q1 - Brand SpurGuinness Nigeria Renewed demand strength to prop Revenue in Q1 - Brand Spur

Latest News

#RadlerMoments: 5 Things We Totally Love About The Star Radler Tour

When was the last time you took a break from stressful activities? As the year finally comes to a much-awaited...

Solar Hybrid Mini-Grid: REA electrifies Ogun state community after 200 years (Photos)

It was the turn of the indigenes of Olooji community, Ijebu-East, Ogun state. The Rural Electrification Agency (REA) delivered a 100kWp Solar Hybrid Mini-Grid...

Taraba State Governor Flags Off 82Km Mararaba-Baissa-Abong Road; Challenges FG on the Mambilla Hydro Power Project

Taraba State Governor, Darius Dickson Ishaku has challenged the Federal Government to show clear intentions on building the Mambilla Hydro Power Dam because, if...

NSE Lifts Suspension on Trading in FTN Cocoa Processors Shares

The suspension earlier placed on the trading in the shares of FTN Cocoa Processors Plc has been lifted by the Nigerian Stock Exchange (NSE). The...

What to expect from Art X Lagos 2020

ART X Lagos 2020, is happening online at ARTXLAGOS.COM from 2-9 December 2020. The virtual presentation will include ART X Talks, ART X Live!, ART X...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Guinness Nigeria Renewed demand strength to prop Revenue in Q1 - Brand SpurGuinness Nigeria Renewed demand strength to prop Revenue in Q1 - Brand Spur