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Guinness sustains profitability


Guinness Nigeria Plc has shown it resilience and ability to forge ahead as reflected by its results made available to the public last week.

The audited result of the multinational Diageo Drink Group for the year ended 30th June 2009 shows turnover of N89.148 billion, representing a growth by 29%, as against N69.173 billion in 2008.

Its profit after tax and exceptional items also stood at N13.541 billion in the year under review, compared with the N11.861 billion it realised in 2008.

Guinness is the second largest brewer in Nigeria. Its board of Directors had earlier recommended a dividend of N7.50 per share as it closed its register last Friday.

It had also fixed November 2, 2009 as its payment date.

Guinness owns majority of its shares with various leading brands such as Satzenbrau, Smirnoff ice and among others as it forges ahead in the diversification of its product base.

The company has a strong competitive advantage in the stock market, leveraging on the wide market of Guinness stout.

Its share price which closed at N136.50 per share on Friday, can be said to be one of the blue-chip stocks that has sustained NSE indices from falling below the region it has stayed for some months now, following the activities of the bears and global economic recession.

Although Guinness Nigeria Plc, which stood at N98.01 per share as at January 2, 2009, has not had a smooth ride, it has demonstrated a commitment to cross the N150 per share mark.

Its half-year result for the period ended December 31st 2008 had earlier shown modest growth in its performance.

Guinness turnover grew by 35% from N32.13 billion in 2007 to N43.48 billion.

Its profit after tax increased sharply by 52%, from N5.24 billion in the comparable period in 2007 to N8.06 billion in 2008.

Also, its earnings per share during the period stood at N3.55 which is similar to what was posted last financial year and this could be due to increased operating cost. However, earnings per share as at March 3rd 2009 was N9.95.

(Source:Business Hallmark)

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