Guinness Nigeria has announced its interim results for the six months ended December 31, 2014. The company delivered a 5 percent increase in revenue, while gross profit was up by 2 percent.
Speaking on the announcement, John O’Keeffe, managing director/CEO, Guinness Nigeria plc, said:
“We experienced improvement in performance during the half year period as revenue for the second quarter showed a growth of 13 percent compared to -6 percent in the first quarter. The negative gearing due to mix drove a net sales growth of 5 percent.”
The results, which were released to the Nigerian Stock Exchange, also disclosed a marked increase in one-off costs and administrative and marketing expenses.
Speaking on these, Ron Plumridge, finance and strategy director, Guinness Nigeria, said: “Some of the key cost drivers over the period are the significant investments made to support our route to consumer optimisation and restructure our organisation and will support future growth.
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“These strategic investments, which have been classified as one off costs in the income statement, have depressed operating profit for the half. In the second half, we plan to sustain volume growth but recognise there are significant external uncertainties we will need to continue to manage.”
Babatunde Savage, chairman of the board of Guinness Nigeria, said: “The board is confident that we are making the right investments in the company to ensure our long-term competitiveness, and continues to support the management in its efforts to build a business that can win in the market.”
Guinness Nigeria was established in 1962, with Nigeria being the first country to have a Guinness brewery built outside of the British Isles.
Products from the brewer’s stables include Guinness Foreign Extra Stout, Harp Lager Beer, Malta Guinness, Dubic Lager, Snapp and Orijin.
Guinness Nigeria is a leading alcohol beverage manufacturer in Nigeria and one of the oldest companies in Nigeria. Listed on the Nigerian Stock Exchange in 1965, it is also one of the foremost quoted companies in Nigeria having built its first brewery in Ikeja in 1962, and currently has facilities in Ogba, Benin City and Aba.
Guinness Nigeria is a member company of Diageo plc, the world’s leading premium drinks business with an outstanding collection of brands such as Johnnie Walker, Smirnoff, Ciroc, J&B, Baileys, Cuervo, Tanquery and Captain Morgan, among others.
