.. 30% revenue growth and 24% gross profit increase for
quarter one 2018 fiscal year
.. Operating profit of N2.6bn, N2.0bn improvement compared
to the previous year
..Rights issue
process concluded and oversubscribed with funds received at the end of
September
Guinness Nigeria today announces its first quarter results
for the period ended 30 September 2017. The company delivered revenue of N29.9
billion and gross profit of N10.4bn representing a 30% and 24% increase
respectively over the same period last year. The results reflected continued
growth within the spirits business as well as benefit of an expanding
portfolio, however this was against the backdrop of lapping the inventory
reduction last year.
The results, released to the Nigerian Stock Exchange (NSE),
also saw the company’s marketing expenses increase by 12% indicating continued
investment behind its brands, administrative expenses were reduced by 17%
driven by the organisation’s Productivity agenda. The company has put in place
these processes and changes as part of its strategy to drive efficiency which
will help position it for more sustainable growth.
Commenting on the quarter one results, Peter Ndegwa,
Managing Director/CEO, Guinness Nigeria Plc said: “Although trading conditions
continue to be difficult, we delivered a credible performance with a Net Sales
growth of 30% for the quarter. This was against the backdrop of changes in
commercial footprint in the prior year as well as benefit of an expanding
portfolio. We also continue to see value from our focus on Productivity in
areas like sales as we empower our teams for success on the frontline as well
as driving efficiency in logistics. This has released resources that we are
able to re-invest behind our brands.’
Mr Ndegwa added: “A critical part of our strategy is to
expand our portfolio and as we continue to innovate with the introduction of
new brands and formats, our spending on A&P is critical to driving growth
not just for our innovation brands but also for our core brands like Guinness
and Malta Guinness.”
In January 2017, Guinness Nigeria received approval from its
shareholders to raise 40billion naira from existing shareholders via a Rights
Issue offering five (5) new shares for every eleven (11) held, at 58 naira
each. The exercise which was successfully concluded at the end of August was
116 percent subscribed. Mr Ndegwa said: “The funds raised from the Rights Issue
will be used to reduce the level of borrowings and consequently our funding
cost. In particular we have used the funds to reduce our foreign currency loan
by 60% which in turn will reduce the foreign currency volatility on our balance
sheet.”
The company also recently held a successful 67th Annual
General Meeting (AGM) in Abuja. Commenting on the meeting, Mr Babatunde Savage,
Chairman, Guinness Nigeria Plc, said: “On behalf of the Board, Management and
staff of Guinness Nigeria Plc, I will like to say thank you to our shareholders
for their loyalty and support. We have been part of the fabric of this Nation
for over 67years. Our desire is to continue to grow our business for the
benefit of all our stakeholders – including our shareholders, our people and
our communities.”
Also at the AGM, the Board’s recommendation to pay out a
dividend of 64Kobo per 50k share in respect of the year ended 30 June 2017 was
approved.
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