Guinness Nigeria Plc NGX: GUINNESS) posted a significant growth in revenue in 2021. The company also returned to profit, according to its financial statements for the year ended June 30, 2021.
The company grew its revenue by 54%, while the profit after tax increased by 110%, compared to 2020 financial reports.
Guinness Nigeria had in 2020 reported a loss for the first time since 2016 in a financial year.
The Board of directors of the company proposed over N1 billion naira as a dividend for the period ended June 30, 2021. The company did not declare a dividend in 2020.
Income Statement
Revenue increased by 54% to N160.42 billion in 2021 from N104.38 billion in 2020. ‘
Nigeria is the company’s primary geographical segment as over 99% or N158.94 of the company’s revenue in 2021 is earned from sales in Nigeria.
Gross profit rose to N45.71 billion from N33.33 billion in 2020. Nevertheless, the gross margin dropped to 28.49% in 2021 from 31.93% recorded in 2020, due to an increased cost of sales.
Marketing and distribution expenses increased by over N7 billion to N26.07 billion in 2021 from N18.52 billion in 2020, whereas the administrative expenses dropped by nearly N4 billion to N10.5 billion from N14.34 billion.
The company’s finance cost slightly increased to N4.63 billion from N4.54 billion in 2020.
Guinness Nigeria’s tax expense amounted to N4.51 billion in 2021, a significant shift from the tax credit of N4.94 billion reported in 2020.
Profit for the year jumped 110% to N1.26 billion against a loss of N12.58 billion reported in 2020.
The earnings per share stood at 57kobo in 2021. The prosed dividend of N1.01 billion is 80.26% of the company’s profit for the year.
Read also: Zenith Bank Plc declare 30Kobo Interim Dividend for Half Year period 2021, report N106.11bn Profit
Balance sheet
Guinness Nigeria’s total assets increased to N169.41 billion as at June 30, 2021, from N144.15 billion as at June 30, 2020.
The increase was mainly due to an over N30 billion increase in cash and cash equivalents to N35.87 billion from N5.27 billion in 2020.
The current assets rose to N74.74 billion, while the non-current assets amount to N94.67 billion. Property, plant and equipment represent 99.54% of the non-current assets.
The total liabilities increased by over N24 billion to N95.12 billion in 2021, due to a nearly N30 billion jump in the trade and other receivables to N61.68 billion.
Current liabilities represent 87.22% or N82.96 billion of the total current liabilities. This shows that Guinness Nigeria holds more current liabilities than current assets. The company’s current ratio stands at 0.9.
Total equity rose by over N1 billion to N74.29 billion from N73.04 billion in 2020, due to an increase in retained earnings to N25.74 billion. Although, the major component of equity is share premium, which amounts to N47.45 billion.
Cash flow
Net cash generated from operating activities stood at N52.38 billion in 2021, N15.09 billion was generated in 2020.
Net cash used in investing activities amounts to N11.38 billion in 2021, N10.21 billion was used in 2020.
Net cash of N10.27 billion was used in financing activities in 2021, whereas N1.72 billion was generated in 2020 from financing activities.
The equity price of Guinness Nigeria closed flat at N31 per share on Friday. Year-to-date the share price is up 63.16%. The 52-week high and low prices are N13.45 and 35.90 respectively.
Substantial interest in shares Shareholders
According to the register of members, the following persons held more than 5% of the issued share capital of the Company as at 30 June 2021
- Guinness Overseas Limited: 1,099,230,804 or 50.18%
- Atalantaf Limited: 171,712,564 or 7.84%
- Stanbic IBTC Nominees Limited/C026 Main: 119,250,813 or 5.44%
- Mutima Opportunity Fund LP-Trading: 112,502,111 or 5.14%
About Guinness Nigeria Plc
Guinness Nigeria Plc, a public limited liability company quoted on the Nigerian Stock Exchange was incorporated 29 April 1950 as a trading company importing Guinness Stout from Dublin. The Company has since transformed into a manufacturing operation and its principal activities continue to be brewing, packaging, marketing and selling of Guinness Foreign Extra Stout, Guinness Smooth, Malta Guinness, Guinness Gold, Harp Lager, Smirnoff Ice, Satzenbrau Lager, Dubic Malt, Snapp, Orijin Spirit Mixed Drink, Orijin Bitters, Smirnoff Ice Double Black with Guarana, Orijin Zero and Orijin Herbal Gin, Baileys Delight, Gordons Moringa among others.
Following the approval of the Board of Directors (“the Board”), Guinness Nigeria Plc acquired the rights to import, market, distribute and sell in Nigeria the International Premium Spirit brands of Diageo plc (“Diageo”), its parent company with effect from 1st January 2016. The Company now has exclusive distribution rights to Diageo’s iconic brands in Nigeria including Baileys, Smirnoff, Gordons, Captain Morgan, Tanqueray, Ciroc and the Johnnie Walker range.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
