The Nigerian Stock Exchange today published the first quarter financial results for the three months period ending September 30th, 2015 of Guinness Nigeria Plc which showed sharp profit decline amidst increased cost.

The results indicated a 3 per cent appreciation in revenue from N21.048 billion to N21.742 billion, but an 18 per cent increase in cost of sales to N12.4437 billion from N10.5 billion as other income fell 25 per cent to N144.242 million from N193.095 million.

Profit before tax declined by 74 per cent to N517.565 million from N1.962 billion, while profit after tax dropped 76 per cent to N362.296 million from N1.484 billion; as basic earnings per share also fell 76 per cent to 24 kobo from 94 kobo.

Current share performance of Guinness Nigeria Plc plunged 5.7 per cent or N8.6 during its last trading session to close at N142.2 per share.

evansvenus:
I think the present administration should pull strings and get back to work...they have been massive retrenchment of staffs in various organistations...that because they profits keep declining..companies are closing down,because they aint sure of govt policies direction,nigeria's unemployment rate is all time high and we can't allow it to keep skyrocketting!

Osyxcel:
What are the factors that account for the increase in cost of sales?

What are the activities from which the "other incomes' are gotten from?

Oya, let's start from there. Since sales slightly increased, that means guys still dey drink wella

ShowYourCertificate:
Yes, that's the question. The Nigerian population is on the rise and this expectedly led to the increase in the Gunness drinkers population. This should have led to an increase in profit but unfortunately it is not so. Cost of production is high due to our bad economy. What's the implication? Expect an increase in the price of Guinness and other alcoholic beverages. 76% loss, no company can tolerate such on the long run.

ShowYourCertificate:
Yes, that's the question. The Nigerian population is on the rise and this expectedly led to the increase in the Gunness drinkers population. This should have led to an increase in profit but unfortunately it is not so. Cost of production is high due to our bad economy. What's the implication? Expect an increase in the price of Guinness and other alcoholic beverages. 76% loss, no company can tolerate such on the long run.

ShowYourCertificate:
Yes, that's the question. The Nigerian population is on the rise and this expectedly led to the increase in the Gunness drinkers population. This should have led to an increase in profit but unfortunately it is not so. Cost of production is high due to our bad economy. What's the implication? Expect an increase in the price of Guinness and other alcoholic beverages. 76% loss, no company can tolerate such on the long run.

LastSurvivor:
This dullard of a MAN has finished Nigeria.
do u know what that profit decline and increase in production cost mean?
It means they will reduce work force to cut cost or better still fold and go to another country if it continues like this.
God will punish anybody who help put us in this condition..

ShowYourCertificate:
A whole Guinness? 76% loss? That's massive. Our economy is on a steady decline. Buhari is a certified dullard. It's now confirmed.

DikeOha882:
I think its has to do with competition from Sabmiller brewery and others, people in the Eastcoast adopted Hero brand as their own even here in lagos Igbos drink more of hero than any other.

ShowYourCertificate:
http://worldstagegroup.com/index.php?active=news&newscid=25447&catid=30

ShowYourCertificate:
Yes, that's the question. The Nigerian population is on the rise and this expectedly led to the increase in the Gunness drinkers population. This should have led to an increase in profit but unfortunately it is not so. Cost of production is high due to our bad economy. What's the implication? Expect an increase in the price of Guinness and other alcoholic beverages. 76% loss, no company can tolerate such on the long run.