Guinness announces 5% revenue rise
Guinness Nigeria has announced its interim results for the six months which ended December 31, 2014.
The company delivered a five percent increase in revenue, while gross profit was up by two percent.
Managing Director/Chief Executive Officer (CEO), Guinness Nigeria Plc, Mr John O’Keeffee, said: “We experienced improvement in performance during the half as revenue for the second quarter showed a growth of 13 percent compared to minus six percent in the first quarter. The negative gearing due to mix drove a net sales growth of five percent”.
The results, which were released to the Nigerian Stock Exchange, also disclosed a marked increase in one off costs and administrative and marketing expenses.
Finance and Strategy Director, Guinness Nigeria Plc Mr. Ron Plumridge, said: “Some of the key cost drivers over the period are the significant investments made to support our route to consumer optimization and will support future growth.
“These strategic investments, which have been classified as one off costs in the income statement, have depressed operating profit for the half. In the second half, we plan to sustain volume growth but recognise there are significant external uncertainties we will need to continue to manage
Chairman, Guinness Nigeria Plc, Mr. Babatunde Savage said: “The Board is confident that we are making the right investments in the company to ensure our long term competitiveness, and continues to support the management in its efforts to build a business that can win the market”.