Guinness Grows 2018 Net Profit By 249%, Offers N0.64 Dividend

In what may be an impact of the 684.494m ordinary shares by way of rights at N58 each, to recapitalize the company, between June 24 and August 30, 2017, the board of Guinness Nigeria, on Thursday presented its audited financials for the year ended June 30, 2018, indicating that profit before and after tax grew at a faster pace than sales revenue. The company therefore proposed a dividend of N4.03bn, up by 318% from N963.768m in the corresponding period of 2017, translating to 64 kobo, from earnings per share of 330 kobo per share, as against the 128 kobo recorded in the prior year.
Specifically, revenue for the period rose by 14% from N125.919bn in 2017 to N142.975bn; following which cost of sales jumped to N94.35bn, up from N77.604bn, representing a N16.745bn, or 21.57%; leaving gross profit at N48.625bn, which was flat, when compared to the N48.315bn in the 2017 full-year.
Other income dropped slowed to N668.363m from N847.333m; marketing and distribution expenses rose slightly from N25.286bn to N26.012bn; just as administrative expenses dropped to N9.895bn from N13.689bn; resulting in operating profit of N13.386bn, up by 31% from N10.186bn in 2017.
Finance income stood at N2.201bn, slightly slimmer than the N2.253bn of 2017; finance cost also dropped by N4.133bn or 42.27% to N5.644bn, as against the previous N9.777bn; leaving net finance costs of N3.443bn, compared to the N5.524bn.
Profit before tax jumped to N9.943bn; up from N2.662bn; just profit for the year N6.717bn, representing 249%, compared with N1.888bn, despite the 338.68% jump in tax expense from N738.361m to N3.225bn.