One of Nigeria’s leading beverage manufacturing firms, Guinness Nigeria Plc Monday reported a profit after tax of N6.4 billion for its second quarter ended December 31, 2012.
While the company posted a growth of five per cent in turnover from N62.8 billion in the corresponding period of 2011 to N65.6 billion in 2012, its profit after tax declined by 16 per cent from N7.6 billion to N6.4 billion.
Analysts at Rencap Securities Limited had last week envisaged the profit decline due to challenging operating environment.
Shares in Guinness fell by N1.41 to close lower at N296 per share as the market reacted negatively to the results.
Despite the decline in profit, Managing Director/Chief Executive Officer of Guinness, Mr. Seni Adetu, said that the company continued to invest strongly in its brands and infrastructure.
“Over the period in review we have again showed our commitment to enhance our focus on distribution and support long-term growth. Marketing spends also increased ahead of net sales as a result of our growth strategy.”
According to him, the first phase of its expansion project was completed last year with the inauguration of a first of its kind brewing technology in 2012.
“This investment looks set to increase Guinness Nigeria’s stake in the beverage market with a substantial increase in production capacity and increased consumer access to Guinness brands.
Adetu said in spite of a continuing decline in the beer and malt market the management and board of company was confident that their range of leading brands, their continued focus on distribution and their investment in their brands and people would deliver long-term growth for the business.
Meanwhile, trading at the stock market remained green on Monday when trading resumed for the week. The Nigerian Stock Exchange (NSE) All-Share Index added 0.51 per cent to close at 33,511.63, while market capitalisation rose to N10.721 trillion. With yesterday’s performance, the year-to-date growth of the index settled at 19.25 per cent