Guinness Nigeria reports N109bn revenue

September 9, 2014 | Filed under: Company News | Author: Editor

Guinness Nigeria Plc, has released its results for the year ended June 30, 2014.

The Board of the brewing giant met on September 4, 2014 and approved the company’s audited results which show a total revenue of N109 billion and profit after tax of approximately N10 billion.

Also following the release of the results, the Board of Directors of the company recommended, subject to approval at the next Annual General Meeting, slated to hold on November 13, 2014 the declaration of dividend of approximately

N5 billion in respect of the year ended June 30, 2014, which represents 320 kobo per 50 kobo ordinary share.

Speaking to the results, Seni Adetu, Managing Director/Chief Executive Officer of the company said revenue and profit declined due to pricing disadvantage, growth in the value segment where the company is a relatively small player, competitor’s aggressive trade practices and increased finance costs. “On the positive side, the various innovations we have launched in recent times especially Orijin Bitters and Orijin Ready to Drink (RTD) have been quite successful, and we expect to further dial up our play in the value segment with Satzenbrau and Dubic Lager.”

In the period under review, Guinness Nigeria launched several innovation including Orijin Bitters, Orijin RTD and Alvaro. The company confirmed that sales of its innovation brands like Orijin Bitters, Snapp, Satzenbrau, Dubic and Orijin RTD were still growing, heralding a big boost for Guinness Nigeria’s future performance. 

Babatunde Savage, Chairman, Guinness Nigeria Plc, said, “Despite the challenges faced, we progressed in the key areas of cost containment achieving improved cost efficiencies, and the upgrade our route-to-consumer which is directly linked to volume growth recorded by  brand Guinness in the second half of the financial year. The Board of Guinness Nigeria is confident that we have the right people and capability to guarantee the delivery of our strategic priorities of driving out cost to invest in growth, turning the business around by strengthening and accelerating our premium core brands, innovating at scale to meet new consumer needs, and extension of our route-to-consumer advantage.”

Guinness Nigeria was established in 1950 and listed on the Nigerian Stock Exchange in 1965. The company is the custodian of household brands like Guinness Foreign Extra Stout, Guinness Extra Smooth, Harp Lager, Malta Guinness and Malta Guinness Low Sugar, Smirnoff Ice, Snapp, Dubic lager and the Orijin brands, amongst others.