Guinness Nigeria Declares N841.64m Q1 loss as mounting input costs squeezed earnings

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Guinness Nigeria Plc has reported a loss after tax increase of 127.2 percent at N841.64 million for the first quarter ended September 30 as mounting input costs squeezed earnings. The Diageo-owned company’s gross profit fell slightly to N7.01 billion, down from N7.94 billion achieved in the same period of 2019.

However, the first quarter saw volume recoveries following the easing of the COVID-19 restrictions and the gradual reopening of on-trade channels which account for a huge percentage of total sales.

Guinness Nigeria Declares N841.64m Q1 loss as mounting input costs squeezed earnings

Guinness Nigeria’s revenue grew by 11.6 percent at N30.02 billion from N26.89 billion printed in the first quarter in 2019 — this is the highest level of growth since the third quarter in 2018. The increase was supported by multiple mid-single-digit price increases implemented on some of its products to cover for the Value Added Tax and excise duty increase since December 2019.

Guinness Nigeria’s cost of sales grew 21.4 percent at N23.01 billion from N18.95 billion,  faster than revenue – while gross profit tanked at 11.71 percent in the first quarter.

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Guinness Nigeria Renewed demand strength to prop Revenue in Q1

The surge in the cost of sales is due to the impact of surging inflation, and FX weakness and illiquidity on input costs. Marketing and distribution expenses reduced 11.15 percent from N5.20 billion in Q1 2019 to N4.62 billion in Q1 2010.

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Administrative expenses also dropped slightly at N2 billion from N2.18 billion — a sign of operational efficiency on the part of management. Net finance cost fell by 14.1 percent year-on-year as a 96.9 percent increase in finance income offset the 6.2 percent increase in finance costs; it also recorded N384.44 million in FX gains.

Guinness’ loss before tax declined by 14.3 percent year-on-year. However, following a N524.17 million tax deduction during the period, loss after tax increased by 127.2 percent to N841.65 million.

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Guinness Nigeria Plc, a public company quoted on the Nigerian Stock Exchange, was incorporated in Nigeria on 29 April 1950, as a trading company importing Guinness Stout from Dublin.

The Company has since transformed itself into a manufacturing operation and its principal activities continue to be brewing, packaging, marketing and selling of Guinness Foreign Extra Stout, Guinness Smooth, Malta Guinness, Guinness Gold, Harp Lager, Smirnoff Ice, Satzenbrau Lager, Dubic Malt, Snapp, Orijin Spirit Mixed Drink, Orijin Bitters, Smirnoff Ice Double Black with Guarana, Orijin Zero and Orijin Herbal Gin, Baileys Delight, Gordons Moringa among others.

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Guinness Nigeria Declares N841.64m Q1 loss as mounting input costs squeezed earnings - Brand SpurGuinness Nigeria Declares N841.64m Q1 loss as mounting input costs squeezed earnings - Brand Spur

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Guinness Nigeria Declares N841.64m Q1 loss as mounting input costs squeezed earnings - Brand SpurGuinness Nigeria Declares N841.64m Q1 loss as mounting input costs squeezed earnings - Brand Spur

Latest News

DHL donated IDR2.4 billion to SOS Children’s Villages in six years of partnership in Indonesia

  • With DPDHL Group's support and contribution of €140,000 (IDR2.4 billion) since inception, program has benefitted more than 2,500 young people in Indonesia
  • GoTeach program aims to improve youth employability, especially now with challenges posed by the COVID-19 pandemic

JAKARTA, INDONESIA - Media OutReach - 8 March 2021 - DHL Global Forwarding, the leading international freight specialist arm of Deutsche Post DHL Group (or DPDHL Group), today commemorates six years of partnership with SOS Children's Villages (SOSCV) at a DHL GoTeach Donation Ceremony. Working together with the non-governmental organization (NGO) focused on supporting children without parental care and families at risk, DPDHL Group has reached out to more than 2,500 beneficiaries in Indonesia through mentorship and educational activities and a contribution of €140,000 (IDR2.4 billion) since 2014.


Guinness Nigeria Declares N841.64m Q1 loss as mounting input costs squeezed earnings - Brand Spur

"As one of the largest employers in the world, the Group is supportive of programs that prepare job seekers for the working world, especially during such challenging times. Today, we are proud to commemorate our six years of partnership with SOS Children's Villages at the DHL GoTeach Donation Ceremony," said Thomas Grunau, Global Head of Business Strategy & Digitalization, DHL Global Forwarding.

During the ceremony, Grunau presented a donation of €5,000 to SOSCV Indonesia in support of the Pandemic GoTeach project, which offered an online employability training to more than 1,000 young people all over Indonesia in 2020. With the support of 12 volunteers, the online training sessions, covering employability related topics such as job interview and resume writing skills, will continue in 2021 until social distancing measures ease up. The program is the brainchild of Elok Vinindya Wardhani, Marketing and Corporate Communications, DHL Global Forwarding Indonesia, who was recognized for her initiative and effort with the organization's CEO award in the category sustainability.

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DHL Global Forwarding Indonesia President Director, Vincent Yong said, "In today's rapidly changing world, education paves the way to a stable, sustainable and prosperous tomorrow. Through the GoTeach program, DHL hopes to help the youth in Indonesia to develop the skills and confidence to enter the professional world. With 509 employees across all business divisions volunteering for more than 3,000 hours in the past six years, GoTeach also delivers opportunities for our employees to actively contribute and play a role in the community."

GoTeach is a group-wide corporate responsibility program aimed at improving youth employability for those from disadvantaged socio-economic backgrounds. Educational and mentorship activities are regularly organized to better prepare them to enter the working world.

"The sustainability and power of an economy and the society depend on a strong educational system and targeted efforts to develop the next generation of working professionals. During the COVID-19 pandemic, jobs and livelihoods have been impacted, deepening the need for training and mentoring programs, such as GoTeach, for our youth to continue to develop their competencies and capabilities to reach their dreams. SOS Children's Villages is happy and proud to join hands with DHL Indonesia to deliver on this commitment," said Gregor Hadiyanto Nitihardjo, National Director SOS Children's Villages Indonesia.

According to UNICEF, there are approximately 24 million students who have dropped out of school as a result of the pandemic, adding to the 870 million students or half of the world's student population in 51 countries who have yet to return to school.

In Indonesia, DHL Global Forwarding together with DHL Express and DHL Supply Chain have continuously focused on developing youth's potential since 2014, sharing knowledge on soft and hard skills as well as supporting career development and employability for young people. The GoTeach program has been conducted in several locations across Indonesia such as Meulaboh, Banda Aceh, Medan, Jakarta, Lembang, Semarang, Bali and Flores. For the past six years, DHL employees have actively become mentors in several GoTeach activities such as skill preparation, job shadowing, DHL facility tours, internships and dream camp activities at SOS Children's Villages to improve employability. The initiative is also part of DPDHL Group's effort to contribute to local communities where they operate.


DHL – The logistics company for the world

DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 380,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as "The logistics company for the world".

About SOS Children’s Villages

SOS Children's Villages is a non-profit organization that provides alternative care for children who lost or at risk of losing their parental care. Founded in 1949 in Innsbruck, Austria, SOS Children's Villages now are in 136 countries, including Indonesia. Today, Indonesia SOS Children's Villages have nurtured and assisted more than 5.500 children in 11 cities in Indonesia: Lembang, Jakarta, Bogor, Semarang, Yogyakarta, Tabanan, Maumere, Banda Aceh, Meulaboh, Medan, and Palu. For further information, visit: www.sos.or.id | @desaanaksos


*Special Notes

SOS Children's Villages prioritizes family-based care and we form substitute families for children who lost or at risk of losing their parental care. The Mothers and Children establish a family relationship with each other just like any family out there (family-care), so we avoid terms such as an orphanage, foster child, foster mother, and orphans that is replaced with the term a child who lost or at risk of losing their parental care. In SOS Children's Villages, we also pay close attention to children's interests and we also protect their privacy, so any information that is related to their background and personal matter will only be shared with particular parties and will not be published to the public.

Guinness Nigeria Declares N841.64m Q1 loss as mounting input costs squeezed earnings - Brand Spur
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