Guinness Nigeria Plc has announced a revenue increase of 6 per cent for the first quarter of its financial year ended 30 September 2016.
The company said the increase was driven in part by contributions from its new mainstream and international premium spirits business as well as the continuing growth of its value brands.
The financial statements released to the Nigerian Stock Exchange over the weekend also showed that the company had a Loss After Tax position of N2.2bn in the period.
Peter Ndegwa, Managing Director/CEO, Guinness Nigeria said the revenue growth was in spite of continuing challenges in the operating environment.
“The environment remains tough but we have seen contributions from our mainstream and international premium spirits brands as well as continuing growth of Satzenbrau.
These were the key drivers of the 6% revenue growth recorded for the quarter.
“Our cost of sales was impacted by the high inflationary environment and continuing currency devaluation leading to a reduction in operating profit. The higher finance cost in the quarter is due to the impact of unrealized foreign exchange losses as a result of the currency devaluation”.
“We will also continue to invest behind our brands with a key focus on building the right portfolio for future growth and re-shaping our organization to take advantage of what is likely to continue to be a challenging market in the short to medium term” he added.
Citing long term commitment to the Nigerian market as a key driver, Guinness Nigeria recently announced a further GBP12M of investments into Nigeria as it plans to commission a new spirits manufacturing line in its Benin plant in the coming weeks.
This investment will give a big boost to the company’s ambition to source 75 per cent of its production raw materials locally in the next two years.
Additionally, at the beginning of October, Guinness Nigeria commissioned a new water project in a community in Benue State as part of its Water of Life programme, which in turn is one pillar within the company’s broader community investment agenda.