Guinness Nigeria Plc (GUINNESS), in its Q1:2020 results, recorded a decline in revenue by 4.25% to NGN26.90bn (vs. NGN28.09bn in Q1:2020). The significant decline in the firm’s exports by 75.17% muted the growth recorded in its Nigeria sales (3.56%). This drop-in export sale is due to Guinness’ fallen production volumes to its sister company, Guinness Ghana Breweries, as they now produce locally. In Q1:2020, cost of sales was flat at NGN18.95bn (vs. NGN18.99bn in Q1:2019), while operating expenses declined as in previous quarters by 3.36%, due to the decline in distribution expenses by 15.70%. The rise in finance costs by 116.95% to NGN1.29bn gobbled up the firm’s meager profit, which led to Guinness recording a loss of NGN0.37bn in Q1:2020. Given the pressure on the firm’s top line due to the significant decline in its exports which might persist in the near term, we expect earnings to remain downbeat in the coming quarters. Kindly find attached the full report.
Earnings Update- GUINNESS- Q1 2020.
Guinness Nigeria Plc (GUINNESS), in its Q1:2020 results recorded a decline in revenue by 4.25% to NGN26.90bn (vs. NGN28.09bn in Q1:2020). The significant decline in the firm’s exports by 75.17% muted the growth recorded in its Nigeria sales (3.56%). This drop in export sales is due to Guinness’ fallen production volumes to its sister company, Guinness Ghana Breweries, as they now produce locally.In Q1:2020, cost of sales was flat at NGN18.95bn (vs. NGN18.99bn in Q1:2019), while operating expenses declined as in previous quarters by 3.36%, due to the decline in distribution expenses by 15.70%. The rise in finance costs by 116.95% to NGN1.29bn gobbled up the firm’s meagre profit, which led to Guinness recording a loss of NGN0.37bn in Q1:2020. Given the pressure on the firm’s topline due to the significant decline in its exports which might persist in the near term, we expect earnings to remain downbeat in the coming quarters. Kindly find attached the full report.