Earnings momentum picks up in H1’18… 

H1’18 revenue slightly above estimate, up 19% y/y

EBIT margin strengthens on operating cost improvementDebt burden fading, loans down 250% y/YPAT strengthens to ₦2.1 billion in H1’18 (H1’17: ₦4.7 billion LAT)

Volumes drive revenue growth in H1’18 results                                                                               

Printing slightly ahead of Vetiva estimate, GUINNESS recorded a 19% y/y revenue growth in H1’18 to ₦71 billion. Unsurprisingly, the Q2’18 selling season contributed the bulk of this figure (58%) given the stronger beverage consumption recorded in the festive period. According to GUINNESS, this growth was supported by a c.14% y/y rise in volumes sold. This was mainly due to a lower base from the prior period (amidst an inventory reduction) and an expanded portfolio of spirits brands.

Improvement in operating costs support EBIT margin expansion

Whilst Management has guided on softer sales in the mainstream beer segment (c.70% contribution to beer volumes), we are optimistic for revenue in H2’18 given the mild topline outperformance and continued benefits from the expanded spirits portfolio. Thus, we revise our FY’18 revenue growth estimate to ₦140 billion (Previous: ₦135 billion) – translating to an 11% y/y growth. Meanwhile, volatility in gross margin despite modest stability in the cost environment remains a worrying feature; we lower our FY’18 gross margin estimate marginally to 35% (Previous: 36%). Our earnings estimates are however sizably supported by expectations of a further decline in net interest expense (amidst the lower debt balance and noting that the H1’18 figure was bloated by FX losses), as well as a lower operating expenses forecast. Overall, we revise our FY’18 PAT to ₦6.7 billion (Prev: ₦5.3 billion, FY’17: ₦1.9 billion) – representing a 215% y/y rise. We revise our 12-Month Target Price higher to ₦78.76 (Prev: ₦71.96) and maintain a SELL rating.

Expect consolidation on H1 performance

Guinness Nigeria Plc (GUINNESS) is Nigeria’s second largest brewer. GUINNESS’ brand portfolio includes premium Guinness Foreign Extra Stout, mainstream Harp Lager, Malta Guinness and Orijin. The parent company, Diageo owns a 58% stake in GUINNESS. In 2016, GUINNESS acquired exclusive rights to distribute Diageo’s International Premium Spirits brands in Nigeria and brands from United Spirits Limited (Diageo’s Indian subsidiary).                      

SOURCE, : https://brandspurng.com/guinness-nigeria-plc-h118-earnings-momentum-picks-up-in-h118/

Wat so special abt ftc

I'll love to know how much revenue Orijin alone brings as well as the percentage of their overall earnings Orijin sales constitute.

Nice

Majority drinks to forget their sorrows in this country - We're in a War Zone Even When There's No War

H1'18 just got started

kk

hmmmm

Wow

Wonderful

H1 As in half year 2018. U must be from d future o

yeyerolling:
H1 As in half year 2018. U must be from d future o

....Guinness financial year begins July ..so from July 2017 to January 2018 that's Guinness F18 H1

H1'18?

Are we there yet?

Guineas stout is the only product holding that company. All other products have been receiving heavy pummeling from NB.

Diageo is also doing fantastic for them in the spirit segment.

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Guinness has a July to June accounting year. So, their H1'18 period ended in Dec'17.

9jaBloke:
H1'18 just got started

Weirdly enough, the Guinness stout is a premium brand. With consumer wallets severely depreciated due to the recession, consumer preference moved towards the value beer segment. So, a lot more focus has been on Dubic beer, and Satzenbrau.

You are right about the spirits segment though. The younger demographic seems to favor spirits over lagers.

ewebiodun:
Guineas stout is the only product holding that company. All other products have been receiving heavy pummeling from NB.

Diageo is also doing fantastic for them in the spirit segment.