Guinness Nigeria Records Sloppy Profit for Q1 2016

Baker Magunda

Just 24 hours after its arch-rival, Nigeria Breweries, NB released its Q1 2016 earning result, Guinness Nigeria PLC reported just about NGN 864 million in net revenue.

In the result just released on the website of the Nigeria Stock Exchange, Guinness reported a significant drop in its gross revenue of NGN 69 billion compared to NGN 84 billion recorded in March of 2015, representing -21.7% growth. However, the company’s cost of sales within the period reduced at NGN 39 billion compared with NGN 45 billion in the same quarter last year.

The company has taken measure to reduce its marketing and distribution expenses. The company spent NGN 18 billion within the quarter under review as opposed to NGN 20 billion, representing -10% reduction.

Guinness has been under pressure to repair its badly beaten balance sheet. The company has in recent times launched newer brands to take on Nigeria Breweries, its bigger competitor. For the same period under review, NB reported revenue was NGN 77.5 billion compared to NGN 69.9 billion in Q1 2015 which is a percentage growth of +10.87%. Because of the fact the NB now control over 6 different breweries, the group’s cost of sales has also gone up by +11%. This is NGN 36 billion in Q1 2015 compared to NGN 40 billion in Q1 2016.

Guinness Stout, its flagship brand has not also performed in sales in recent times. Guinness has tried to extend it into other variants but it is not cutting it with beer drinkers. Nigeria is Africa’s second largest beer market after South Africa.

Q1 2016 Result: Nigeria Breweries Shades Competition With Strong Revenue

 

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