Earlyface

Guinness Nigeria Plc, one of the leading
breweries, has announced a profit after tax
(PAT) of N1.743 billion for the first quarter
ended September 30, 2013, showing a
marginal decline of 3.5 per cent compared
with N1.807 billion recorded in the
corresponding period of 2012. Considering
the performance of the company for the full
year ended June 30, 2013, where Guinness
recorded a decline of 17 per cent in PAT, the
Q1 results have been seen as an
improvement.
Guinness reported revenue of N22.409
billion in Q1 of 2013, showing a decline
of 5.4 per cent from the N23.692 billion in
Q1 of 2012. Profit before tax fell by 20 per
cent from N2.657 billion in 2012 to N1.868
billion in 2013. However, a 85 per cent
reduction in tax payment, from N850 million
to N125 million, improved the bottom- line
of the company. As a result, PAT recorded a
marginal fall of 3.5 per cent from N1.807
billion to N1.743 billion. A further analysis of
the results, showed that the company also
reduced its financing cost marginally by 3.5
per cent from N777 million to N747 million
in 2013.
Realising that the company’s performance
for 2103 was affected by high interest
charges, the Managing Director of the
Guinness Nigeria Plc, Mr. Seni Adetu, had
promised that the company would work to
reduce its interest expenses. He said: “Our
growth was bolstered by the strength of
our brands, our successful innovation
launches and our
continued investment in capacity and
improving route to market strategy. Having
said this, our profitability and margins were
being impacted by higher finance charges
arising from the current interest rate
environment. In addition to this, the market
remained challenging with continued
decline in beer volumes. “We are also
positive that our improving interest expense
management will be reflected in a more
efficient net interest margin in the coming
period. Guinness Nigeria is a business with
strong fundamentals and growth strategy
and we will continue to focus on our route
to market and delivering great consumer
experiences to strengthen our position
going forward,” he said.