Guinness Nigeria profit drops by 32%

Guinness Nigeria Plc, has released its half year results to the Nigerian Stock Exchange with a profit after tax decline of 32 per cent.

Despite the increased revenue, the generation, the breweries manufacturing company witnessed significant growth in finance cost and operating expenses that eroded its profit performance in the period under review.

Profit after tax had dropped from N4.997 million recorded in prior half year ended December 31, 2013 to N3.399 million recorded in immediate half year ended December 31, 2014. 

Revenue had gained 4.8 per cent from N52.76 billion to N55.3 billion while cost of sales outpace revenue by 7.4 per cent to N29.5 billion as against N27.47 billion recorded in prior half year of 2013.

Total operating expenses and finance charges gained 9.8 per cent and 38.6 per cent from N17.5 billion and N1.95 billion to N19.2 billion and N2.7 billion respectively.The decline profit had impact on basic earnings per share that dipped 41 per cent from N2.16 per share to N1.27 per share.

There was a mix grill in balance sheet position as total assets gained nearly three per cent from N132 billion recorded in June 30, 2014 to N135.9 billion December 31,2014 while total equity dropped by 3.2 per cent from N45.1 billion to N43.6 billion.