These are not exciting times for shareholders of alcoholic and malt beverage making Guinness Nigeria, the local arm of Irish giant brewer- Diageo, judging by its latest audited financials for the year ended June 30, 2020, indicating that its book turned red across major measurement indicators.

A summary of the dismal numbers showed that while sales revenue dipped by 21%, net loss was 329% despite a 22.24% reduction in cost of sales, following which the directors are unable to declare a dividend, a terrible blow for those who thought last year’s N3.329bn from a profit after tax of N5.484bn was miserly. The loss for the year would have been more devastating, but for the tax credit of N4.494bn, compared to a tax expense of N1.619bn in the 2019 full-year.

According to the result, revenue dropped from N131.498bn in the corresponding period of 2019 to N104.376bn, with Nigerian sales dropped from N124.88bn to N102.579bn, while exports revenue crashed to N1.796bn from the previous N6.507bn.

Cost of sales fell to N71.045bn from N91.369bn, mainly the cost of raw materials and consumables amounting to N43.947bn a drop from the prior year’s N69.21bn. This resulted in gross profit of N33.33bn, as against the previous N40.129bn.

Other income for the year declined from N781.477m to N502.967m, driven by leased assets of N240.3m from N477.96m and sales of by-products that fetched N255.732m, compared to the previous N276.059m. Marketing and distribution expense dropped from N21.751bn to N18.515bn; but administrative expenses rose to N14.339bn from N9.857bn; while impairment loss on property, plant and equipment stood at N11.722bn, from nil in the prior year. Operating loss therefore stood at N12.832bn, compared to the preceding year’s N8.966bn profit.

Finance income slipped from N750.903m to N301.043m; while finance costs soared from N2.613bn, as against the N4.542bn reported in the 2019 full-year, boosted by finance expense on loans and borrowings of N2.978bn, up from N1.715bn. This translated to net finance costs of N4.241bn, as against the N1.862bn last year.

Loss before tax stood at N17.073bn, as against the N7.103bn profit reported in the preceding full-year; while the tax credit left loss for the year at N12.578bn, from a profit of N5.483bn, translating to a loss per share of N5.74, as against the N2.50 earnings.