Guinness Nigeria Plc said yesterday that it had been fined N1billion ($5 million) by the local food and drug agency over alleged infractions relating to the destruction and re-validation of expired raw materials without prior approval.

The local unit of Diageo said it did not fully understand the basis for the fine, nor the particular regulations infringed, but was in talks with the National Agency for Food and Drug Administration and Control (NAFDAC) to resolve the matter.

Guinness reported a 76 per cent year-on-year drop in the three months ended September 30, 2015. The company's results for the period, which is the first quarter of its financial year ending on June 30, 2015, showed that its profit after tax fell from N1.485billion in the corresponding period of 2014 to N362.3million.

Guinness Nigeria's profit before tax fell by 74 per cent from N1.963billion to N517.5million, while basic

earnings per share declined by 76 per cent from N94 to N22.

A positive for the company in the period is a three per cent year-on-year growth in revenue, which saw it realise N21.742billion in the three months to September 30, 2015 as against N21.048billion in the same period a year earlier.

Guinness Nigeria, however, recorded an 18 per cent increase in cost sales – from N10.499billion to N12.437billion in the review period, while its distribution and administration expenses rose by two per cent from N7.838billion to N8.001billion.

The company's other income ...
http://authorityngr.com/2015/11/Guinness-Nigeria-fined-5-million-dollars-over-expired-raw-materials--/