Guinness Nigeria Plc (NGX: GUINNESS) has reported over N5 billion loss for its half-year period ended 31 December, 2023 amid soaring finance cost despite 20.38% rise in revenue during the period.
Income Statement
Revenue increased by 20.38% to N142.6 billion in 2023 from N118.45 billion in 2022. ‘
Nigeria is the company’s primary geographical segment as over 99.06% or N141.26 billion of the company’s revenue during the period in review was earned from sales in Nigeria.
Gross profit rose to N45.94 billion from N42.29 billion in 2022. Nevertheless, the gross margin dropped to 32.22% in 2023 from 35.70% recorded in 2022, due to an increased cost of sales.
Marketing and distribution expenses increased by nearly N2 billion to N23.79 billion in 2023 from N21.93 billion in 2022, whereas the administrative expenses dropped slightly to N8.26 billion from N8.77 billion.
The company’s finance cost jumped by 255.79% to N23.88 billion from N6.71 billion in 2022.
Consequently, Guinness Nigeria booked N4.43 billion loss before tax in 2023, against N7.23 billion profit before tax in 2022.
The company reported a tax expense of N801.44, million, compared to N3.21 billion reported in 2022.
Hence, loss for the period amounted to N5.23 billion against a profit of N4.02 billion reported in 2022.
The earnings per share stood at minus 239kobo in 2023 against 184 kobo in 2022.
Balance sheet
Guinness Nigeria’s total assets increased to N266.79 billion as at December 31, 2023, from N241.75 billion as at June 30, 2023.
The increase was mainly due to over N20 billion increase in cash and cash equivalents to N113.83 billion from N92.12 billion in 2023.
The current assets rose to N166.02 billion, while the non-current assets amounted to N100.06 billion. Property, plant and equipment represent over 99% of the non-current assets.
The total liabilities increased by nearly N30 billion to N214.38 billion in 2023, due to over N30 billion jump in the trade and other payables to N148.23 billion.
Current liabilities represent 99% or N212.53 billion of the total liabilities.
Total equity dropped to N51.7 billion from N56.42 billion, due to a decline in retained earnings to N3.16 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 N49.50 billion in 2023, N24.51 billion was generated in 2022.
Net cash used in investing activities amounts to N2.79 billion in 2023, N2.09 billion was used in 2022.
Net cash of N13.89 billion was used in financing activities in 2023, against N10.49 billion used in 2022.
The equity price of Guinness Nigeria closed flat at N70.75 per share on Thursday. Year-to-date the share price is up 7.2%. The 52-week high and low prices are N80 and N55 per share respectively.
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.
