Downward Spiral: Guinness Post 30% Drop In Pre-tax Profits (2014 9 Months Result)

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Guinness Nigeria Plc released its 2014 9 Months results posting a revenue of N78billion for the period ending 9 months March 2014. See highlights;

• Turnover dropped 11% to N78billion (March 2013: N88billion)
• Gross profit dropped 9% YoY to N36billion (March 2013: N39billion). Gross profit margin was however slightly higher at 47% compared to 45% a year earlier indicating a cut down on cost of sales.
• Operating profit (without other income) which indicates how efficient the business it organically was N9.8billion a 25% drop from N13billion posted a year earlier.
• Operating profit wasn’t helped by operating expenses which remained at about N26billlion same as the year before.
• Pre-tax profits after finance cost was N7.8billion and 30% lower than the N11billion it posted same time last year.
• Earnings per share at the end of the period was N3.9 compared to N5 same period last year
• Guinness now has a debt portfolio of N48.5billion increasing the debt from about N20billion at the end of December 2013.
• Guinness has seen margin shrink over the last two years as it continues to find ways to battle competition from medium sized breweries with cheaper beers.
• Guinness Plc share price dropped 5% to N180.5 at the close of trading April 28th 2014.