Home Business Nigeria: Guinness Nigeria Reports 110% Increase in Profit to N1.25 Billion

Nigeria: Guinness Nigeria Reports 110% Increase in Profit to N1.25 Billion

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Guinness Nigeria Plc, a subsidiary of Diageo Plc, has announced its audited results for the period ended June 30, 2021 revealing a 110 per cent increase in profit after tax to N1.25billion from loss of N12.6billion reported in full year ended June 30, 2020.

The company said it recorded double digit growth across all key categories despite the impact of COVID-19 restrictions and economic challenges.

As a result, the management recommended N1,008 million dividend, subject to shareholders’ approval at the forthcoming Annual General Meeting (AGM).

The audited results, which were released to the Nigerian Exchange Group (NGX) indicated that revenue increased 54per cent to N160 billion in 2021 from N104.4 billion reported in 2020

Managing Director/CEO, Guinness Nigeria Plc, Mr. Baker Magunda, in a statement said: “The performance of fiscal 2021 showed that the business delivered growth despite the challenging external environment characterized by COVID-19 restrictions and high inflation.Revenues grew double digit across all key categories, particularly our strategic focus brands Guinness, Malta Guinness as well as our local and imported spirits.”

“This was supported by improved product mix and headline price increases in key brands. Gross margins declined by three per cent driven by inflationary pressure, a shift towards more expensive can products given at-home consumption trends, and forex devaluation impacting some materials.” Magunda explained.