Guinness Nigeria Plc, the nation’s leading beverage manufacturer, has made public its financial results for the first quarter (Q1) ended 30 September 2012.
The results highlighted revenues at the same level as the same period last year, while cost of sales went down year on year by 3 percent despite double digit inflation figures as the company benefited from increased production efficiencies. Gross profit was also up by 4 percent but profit before tax was N2.6 billion, as a result of increased spending on advertising and promotion to support its brands and financing costs, as a result of its ongoing capacity expansion programme.
Seni Adetu, the managing director/chief executive officer, Guinness Nigeria Plc commenting on the companies result said “Our year on year growth was flat versus last year in a quarter which witnessed an overall decline in the beer and malt market and continued pressure on disposable income. In spite of the continuing challenges in the economy and the beer market
specifically, you will notice that distribution and administrative expenses were flat as a result of our focus on driving cost efficiencies.”
He continued: “Over the period, we have remained focused on managing for value as our cost of sales declined 3 percent and gross profit was up 4 percent in the quarter.
“Our advertising and promotion expenses were up weighted during the period as we continued to show our belief and commitment to our brands through increased investments. We are positive that with our investment in our brands and route to market, we will deliver the operating plan for the year and drive both top and bottom line growth.”