Guinness reports 14% rise in revenue to N142.9bn

September 4th, 2018

Guinness Nigeria Plc delivered a solid performance in the year ended
30 June 2018 as revenue increased by 14% from N125.92 billion in June
2017 to N142.98 billion. The results, which were released to the
Nigerian Stock Exchange (NSE), also showed improved operating margin, as benefits from the company’s productivity program more than offset sustained cost pressures.
Commenting on the results, Baker Magunda, Managing Director/CEO,
Guinness Nigeria Plc, said: “Over the year ending 30 June 2018,
despite continued challenges in the operating environment, Guinness
Nigeria delivered a strong performance. Revenue increased by 14% as
both beer and mainstream spirits’ net sales grew double-digit. In
beer, Guinness, our largest brand, saw strong growth as it benefitted
from increased marketing activations around football. Mainstream
spirits also delivered double-digit growth driven by innovation
launches and new formats.”
“During the year, gross margin was down 4% to 34% largely driven by
inflationary pressure on our raw material costs. However, this was
more than offset by reduced distribution and administration costs and
resulted in operating margin improving 130bps. Marketing spend
increased 18%, ahead of revenue growth, as we continue to invest
behind our brands.”
“Improved operating performance combined with lower finance charges
have helped us deliver an overall PAT increase of 249% during year”.
“The execution of our strategy is working as we delivered both top
line growth and margin expansion while also increasing investment
behind our brands. Looking forward, we will continue to focus on the
three strategic pillars of productivity, expansion of our portfolio,
as well as the execution of the commercial footprint initiatives to
drive the business forward. Whilst we remain optimistic about the
execution of our strategy, we note that the operating and competitive
environment is likely to continue to be challenging in the 2019
financial year.”

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