Nigeria: Guinness Nigeria’s turnover increases 23% in FY 2017
Guinness Nigeria Plc grew its top-line by 23 per cent to N125 billion in 2017 as Nigeria’s second largest brewer staged a major recovery on the back of expanded portfolio and improved cost management, The Nation Newspaper reported on September 4.
Key extracts of the audited report and accounts of Guinness Nigeria for the year ended June 30, 2017 showed that gross profit rose by 16 per cent to N48.3 billion while operating profit doubled by 131 per cent to N10.2 billion.
Managing Director, Guinness Nigeria Plc, Mr. Peter Ndegwa, said that the company’s results were driven by a relentless focus on executing strategy and keeping costs down.
He noted that in spite of the challenging economic conditions, the company has remained focused on executing its total beverage strategy which gained further traction with strong growth in its international premium spirits portfolio following first full year of distribution.
“Our gross profit of N48.3 billion is as a result of volume growth, pricing benefit and a favourable sales mix as we continued to invest in our expanded brand portfolio during the year. Part of that investment includes the N4.7 billion spirits line for locally manufactured spirits which we commissioned in Benin. These strategic acquisitions and expansions have filled the gaps in the spirits brand base allowing us to compete across all categories of the alcoholic beverage market in Nigeria. We remain committed to executing our productivity agenda with a strong focus on cost reduction, distribution and operational efficiencies,” Ndegwa said.
Chairman, Guinness Nigeria Plc, Mr Babatunde Savage, said that the company remains committed to the Nigerian market.
“It is pleasing to see that the decisions we have taken in recent years have helped to position the company for sustained business growth. We are grateful for the strong support that our shareholders have afforded us over the years,” Savage said.
He assured that with its continuing focus on driving performance and determination to positively impact the lives of Nigerians, Guinness Nigeria looks forward to continuing to give Nigerians a reason to celebrate life every day and everywhere.
In December 2015, Guinness Nigeria became the first total beverage alcohol company in Nigeria when it acquired the rights to distribute International Premium Spirits (IPS) including Johnnie Walker Scotch whisky and Bailey’s liqueur in Nigeria. This was quickly followed in January 2016 by the acquisition of the rights to distribute McDowell’s, a United Spirits Limited (USL) whisky brand.
British multinational and world’s largest producer of spirits, Diageo, United Kingdom, recently committed to investing additional N21.6 billion in new equity funds in its Nigerian subsidiary-Guinness Nigeria.
Savage, who confirmed the impending additional investment, said Diageo has indicated that it will commit up to N21.56 billion in new equity funds to the Nigerian subsidiary through the a supplementary capital issue.
Guinness Nigeria recently opened application list for its N39.7 billion rights issue, paving the way for shareholders to pick up their rights. The rights were also traded on the automated trading system at the Nigerian Stock Exchange. Application list for the rights issue opened on July 24, 2017 and closed on August 30, 2017.
Guinness Nigeria offered 684.49 million ordinary shares of 50 kobo each at N58 per share to existing shareholders on the basis of five new shares for every 11 shares held as at the close of business on March 15, 2017.
Savage said Diageo, which holds 54.3 per cent majority equity stake in Guinness Nigeria, had stated that it would fully take up its rights under the rights issue. A full subscription for its rights by Diageo implies financial commitment of N21.56 billion.
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