Guinness announces quarterly result, records 47% growth in operating profit

Guinness Nigeria Plc, a subsidiary of Diageo Plc, has announced its quarterly results for the nine months period ended 31 March 2015.
The announcement, which was made to the Nigerian Stock Exchange (NSE), revealed a 17% increase in net sales for the quarter year on year and a 47% growth in operating profit when compared to the same period last year.
Mr. John O’Keeffe, Managing Director/Chief Executive Officer, Guinness Nigeria Plc, said: “We recorded a strong performance in the quarter driven by the continued success of Orijin and our participation in the value segment of the market through Satzenbrau along with the improving performance of Guinness Stout. As a result, we are reporting a double digit net sales growth in the period.”
The statement revealed that high finance costs in a high interest rate environment negatively impacted overall profitability of the company.
O’Keeffe added: “We will continue to invest in our brands and enhancing our route to consumer. We expect the ongoing currency devaluation to lead to increasing cost pressure and softening consumer demand. In addition, the one-off tax credits in the prior year will not recur.”
The company recently announced a change in the leadership of the company with the exit of the Managing Director/Chief Executive Officer, Mr. John O’Keeffe, who was promoted to take the role as President, Diageo Africa.
His successor, Mr. Soren Lauridsen, will resume in May, 2015 to commence a handover process with O’Keeffe.
Lauridsen joins Diageo from Carlsberg and brings with him considerable experience in the beer category and knowledge of emerging markets.
Babatunde Savage, Chairman, Guinness Nigeria Plc, said: “We have had an encouraging year so far and we believe that we are in a position to finish the year well in spite of the challenges of the operating environment. Recent changes in our management with the arrival of Soren will only further strengthen the pool of seasoned experience we have to help us implement our strategy to win in the market place.”