Nigeria: Guinness Nigeria makes a profit of N524.2 mln in Q2 of financial year 2020/21

Guinness Nigeria Plc in its recently released quarterly filings has revealed that the company made a profit of N524.2 million in the second quarter of its accounting period 2020/21.

This is according to the information and figures contained in Companys’s interim un-audited Q2 financial statements, which was published on NSE’s website on January 28 after the close of the market, Nairametrics reported.

The report revealed that the profit made by Guinness Nigeria in the second quarter of the fiscal year 2020/21, was 68.90% lower than the profit it made in the corresponding period of 2019/20, as the company’s profit after tax declined from N1.69 billion to N524.23 million.

Key Highlights

Revenue increased to N42.33 billion, up by 2.17% Y-o-Y.

Cost of sales increased to N30.75 billion, down by 4.17% Y-o-Y.

Gross profit decreased to N11.57 billion, down by 2.79% Y-o-Y.

Other income increased to 489.88 million, up by 202.28% Y-o-Y.

Marketing and distribution expenses decreased to N6.07 billion, down by 6.69% Y-o-Y.

Administrative expenses increased to N2.86 billion, up by 6.72% Y-o-Y.

Operating profit increased to N3.13 billion, up by 8.72% Y-o-Y.

Net finance costs increased to N1.52 billion, up by 164.76% Y-o-Y.

Tax paid for the period increased to N1.09 billion, up by 75.58% Y-o-Y.

Profit for the year decreased to N524.23 million, down by 68.90% Y-o-Y.

The 2.17% increase in revenue reflects an excellent execution in the off-trade channel, and the partial re-opening of the on-trade channel (bars, restaurants, clubs) in the Nigerian markets.

This improvement in the trade channel of the company at the back of improved consumer demand made revenue from domestic sales increase in the second quarter of its accounting period. However, it is important to note that export sales decreased massively, in the period under review.

28 January, 2021