Guinness Post Lower Than Expected 9months Pre-Tax Profits For 2013

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Guinness Nigeria Plc has released its 9months unaudited report with revenues rising marginally by just 2% to N88billion. Gross profit remained nearly flat at N40billion during the period followed by operating profit which was also flat at N13.5billion (2011: N13.67billion). Pre-tax profits at the end of the period was N11.3billion, 17% lower than the N13billion posted same period 2012. Earnings per share at the end of the period was 507kobo a 19% drop year on year.

Key Highlights

• S,G&A as a percentage of Gross profit is still stubbornly high at 65.5%

• Finance Charges as a percentage of operational profit tripled to 18% during the period compared to 6% in 2012

• The company increased its borrowing to N27billion during the period. The company’s debt is 65% higher than its Equity

• Return on Equity is still good at 20% so is Return on Assets

• The beer market is currently very competitive. Though, the company blames this result on decline in consumer spending

• Share price remained flat at N280

Guinness 9 months earnings for 2013 was posted on the website of the NSE