LAGOS, NOVEMBER 6, 2017 – Guinness Nigeria Plc has announced its first quarter results for the period ended September 30, 2017, delivering total turnover of N29.9 billion and gross profit of N10.4 billion. These represented a 30 per cent increase in sales and 24 per cent growth in gross profit.
Managing Director, Guinness Nigeria Plc, Mr. Peter Ndegwa said the results reflected continued growth within the spirits business as well as benefit of an expanding portfolio.
According to him, the company’s marketing expenses increased by 12 per cent indicating continued investment behind its brands while administrative expenses were reduced by 17 per cent driven by the organisation’s productivity agenda.
He noted that 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.
“Although trading conditions continue to be difficult, we delivered a credible performance with a net sales growth of 30 per cent 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,” Ndegwa said.
He added that a critical part of the strategy is to expand the company’s portfolio and as it continues to innovate with the introduction of new brands and formats, while spending on A & P is also critical to driving growth not just for innovation brands but also for core brands like Guinness and Malta Guinness.
He said the net proceeds of the recent rights issue would be used to reduce the level of borrowings and consequently funding cost, particularly reduction of foreign currency loan by 60 per cent, which will in turn reduce the foreign currency volatility on the company’s balance sheet.