Nigeria’s sluggish economy took a serious toll on the financial performance of Guinness Nigeria as its profit after tax dipped by almost half in six months end December 31, 2019.
The half year financial of statement of the brewer for the period ended December 2019, which was released to the Nigerian Stock Exchange (NSE) on Thursday, indicated that its post-tax profit declined 49 per cent to N1.32 billion from N2.58 billion in the same period in 2018.
The drop in profit came despite the company’s revenue rising 0.78 per cent to N68.33 billion in the first half of 2019/2020 financial year, compared to N67.80 billion.
A review of the Guinness Nigeria’s revenue during this period showed that majority of it came from domestic sales, which was up was 3.76 per cent, while patronage from outside the country fell 42.56 per cent.
The company could hold cost down as expenses on sales climbed 2.48 per cent to N48.48 billion and marketing and distribution cost increased 1.37 per cent to N11.71 billion.
Meanwhile, its earnings per share decreased by almost 50 per cent to 60 kobo.