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Guinness Nigeria Posts Increased Earnings in Q2 Report

Guinness Nigeria | www.drinks.ng

Guinness Nigeria yesterday posted the company’s Q2-17/18 results showing a net profit of NGN2.09 billion (vs. NGN2.44 billion loss last year).

According to the report, the net profit was possible due to continued revenue growth, better margin, and lower opex and finance charges. The net profit was equally higher compared to Q1-17/18’s NGN41.4 million but below our NGN2.70 billion estimate and the consensus expectation of NGN2.8 billion.

The giant brewer’s revenue grew by 11% y/y and 36% q/q, with sales sustained by festive demand, strong marketing effort, and relatively higher prices.

Diageo, the parent company of Guinness Nigeria Plc, in its report said that over the last quarter, the group enjoyed positive price in Nigeria. The report also states that the company’s mainstream spirits and value beer (Dubic precisely) also recorded faster growth during the period. Sales volume was reported to have grown by about 17% y/y over H1-17/18. Value beer (23% y/y), Guinness (14% y/y), Malta Guinness (6% y/y), and mainstream spirits (22% y/y) recorded net sales growth in the first half.

While gross margin remained higher relative to the last financial year (+601 bps y/y), there was a 118 bps decline compared to the first quarter. Gross margin was lower by c.650 bps and has weakened consistently since reaching record 55% in Q3-16/17, reflecting,  growing contribution of value beer and inflation of key raw materials (Sorghum to be precise).

Also worth highlighting is the opex which was lower by 12% y/y with admin and distribution expenses falling to 25% y/y and 24% y/y respectively. Marketing expenses, following strategic campaigns on Guinness, grew to 20% y/y. EBITDA margin of 15.4% was reported, significantly higher y/y, but lower by 96 bps q/q.

There was 65% y/y decrease in finance charges, comprising NGN583 million loss (NGN857 million in Q2-16/17) on foreign exchange transactions and N374 million (vs. NGN1.9 billion in Q2-16/17) related to interest expense on loans and borrowings and overdraft facilities. Compared to Q1, FX loss and interest expenses were lower by 74% and 77% respectively.

The company’s gross debt now stands at NGN12.5 billion post-Rights Issue, and the consequently reduced interest burden will remain supportive of earnings for the rest of 2018.

This post first appeared on Spirit Magazine

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Guinness History – The story of one of the world’s most popular beers

Guinness | www.drinks.ng

guinness

Guinness History – The story of one of the world’s most popular beers

Arthur Guinness inherited £100 from his uncle in 1752. He invested it in a beer brewing facility and began manufacturing Irish stout. Guinness has since become one of the most successful beer brands worldwide. Guinness is a popular Irish dry stout that originated in the brewery of Arthur Guinness at St. James’s Gate, Dublin. It is brewed in almost 60 countries and is available in over 100. 850 million litres are sold annually. A feature of the product is the burnt flavour that is derived from roasted unmalted barley, although this is a relatively modern development, not becoming part of the grist until the mid-20th century. For many years a portion of aged brew was blended with freshly brewed beer to give a sharp lactic flavour. Although the Guinness palate still features a characteristic “tang”, the company has refused to confirm whether this type of blending still occurs. The draught beer’s thick, creamy head comes from mixing the beer with nitrogen when poured.

It is popular with Irish people both in Ireland and abroad, and, in spite of a decline in consumption since 2001, is still the best-selling alcoholic drink in Ireland where Guinness & Co. makes almost €2 billion annually. The company has had its headquarters in London from 1932 onwards. It merged with Grand Metropolitan plc in 1997, and is now part of the British based multinational alcohol conglomerate Diageo.

The beer is brewed under licence internationally in several countries, including Nigeria,the Bahamas, Canada,Cameroon, Kenya, Uganda, Namibia, and Indonesia. The unfermented but hopped Guinness wort extract is shipped from Dublin and blended with beer brewed locally. The UK is the only sovereign state to consume more Guinness than Ireland. The third-largest Guinness drinking nation is Nigeria, followed by the USA.

Guinness has a significant share of the African beer market, where it has been sold since 1827. About 40% of worldwide total Guinness volume is brewed and sold in Africa, with Foreign Extra Stout the most popular variant.

Guinness Nigeria, is a subsidiary of Diageo Plc of the United Kingdom. Guinness Stout was first exported to Sierra Leone in 1827 and soon became popular across West Africa. In 1963, Ikeja in Lagos Nigeria was chosen as the first location outside the British Isles to brew the iconic dark beer. Two years later, in 1965, Guinness Nigeria was listed on the Nigerian Stock Exchange.The brewery was the first Guinness operation outside Ireland and Great Britain. Other breweries have been opened over time – Benin City brewery in 1974 and Ogba brewery in 1982.

Guinness Nigeria is an iconic African company, renowned internationally for its brands of unmatched quality.

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10 Amazing Facts About Guinness

Amazing Guinness Facts | www.drinks.ng

10 Amazing Guinness Facts 

guinness facts

Guinness is one of the most famous beer brands in the world, a legendary Irish brew. But how much do you really know about this beer? Here are a few facts to excite you.

1. The perfect pour of Guinness should take 119.5 seconds and is referred to as a “double pour.”

There are six official steps to pouring a pint of Guinness, including waiting nearly two minutes for the beer to settle between the first and second pour

2. The beer’s official colour is ruby red, not black.

A common misconception is that Guinness is black, but in fact it’s coloured by roasted barley which gives it a ruby red colour.

3.Guinness is brewed in 5 countries around the world.

Guinness owns breweries in 5 countries. The breweries are situated in Ireland, Malaysia, Nigeria, Ghana and Cameroon. All of the ingredients used are sourced locally , except the Guinness extract, a secret mixture that is added to a Guinness brewed anywhere in the world.

4. 850 million litres of Guinness are sold annually.

The company records sales of up to 850 million litres of Guinness annually.

5. Guinness is the perfect diet drink.

A pint of the good stuff contains only 198 calories. That’s less than most light beers, wine, orange juice or even low fat milk.

6. The most Guinness is sold in the UK, followed by Ireland, Nigeria, U.S.A and Cameroon. 

A whopping 40% of all Guinness is sold in Africa!

7. On September 24, 2009 at 5.59 (or 17.59 in the 24 hour clock) Ireland and the world celebrated 250 years of Guinness with “Arthur’s Day”.

In almost every country across the globe merry makers raised their glasses and cheered “To Arthur” !

8.It would take 14.3 million pints of Guinness to fill the giant glass atrium in the center of the Guinness Storehouse building at the brewery’s headquarters in Dublin.

9. The ancient Irish Harp symbol was first used as a symbol for Guinness

The symbol was later adopted by the Irish government as the official government symbol.

10. 3 million pints are brewed every day at St. James’s Gate in Dublin.

Over 10 million glasses are sold everyday.

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Guinness DRINKIQ Workshop

whats you DrinkIQ | www.drinks.ng

Drinks.ng’s partner Guinness Nigeria announces plans to roll out DRINKIQ workshops to University of Lagos Students

Guinness Nigeria has always taken their responsibilities to promote sensible drinking seriously and have recently “put their money were their mouth is!”  The Beer Giant has recently announced their plans to roll out their bespoke DRINKIQ workshop to first year students of the University of Lagos. DRINKIQ is a pilot scheme which will take this interactive platform to the segment of the community who are most in need of guidance on sensible drinking!

The DRINKIQ model seeks to educate students on the effects of binge drinking and alcoholism, seeking to furnish the first year students with the knowledge and information they require to learn to handle alcohol with care. These workshops will also endow the students with information on the adverse effects that drinking to excess can have on your body and your overall health.

As Guinness Nigeria’s online partner, we at drinks.ng are delighted to endorse this endeavour as it is outstanding example of an organization with a social conscience. The first DRINKIQ workshop was carried out during orientation week amongst first year students at the University of Lagos and it was a resounding success!

The Keynote speaker at the initial session was Mrs. Adrianne Nwagwu, (Head of Sustainability and Responsibility for Guinness Nigeria) who confirmed that main purpose of implementing the DRINK interactive workshops was to minimize the number of cases of alcohol abuse and its repercussions amongst university students: “As a company that produces alcoholic beverages, we want to ensure that people consume and enjoy alcoholic beverages the right way, at the right age, and at the right time; and also to reduce significantly, the unwanted effects of alcohol misuse on individuals and our environment”.

Mrs, Nwagwu further emphasized the importance of ‘knowing your limit’ and not being coerced by friends to drink more than you can handle and further amplified that the legal drinking age in Nigeria is 18. During the workshop she advocated a common sense approach, giving practical examples of “sensible drinking techniques” such as: “part of making responsible drinking decisions is that if you must drink at all, endeavour to alternate alcoholic drinks with water because it helps to keep you refreshed. In addition to this, eating before or whilst drinking is also good as it helps to reduce the speed of alcohol absorption. You must also avoid mixing different drinks in order to keep track of your alcohol intake and you must never be involved in drink driving”.

Professor Olukayode Amund, (Dean of Academic Affairs at the University of Lagos) welcomed the pilot scheme, praising Guinness Nigeria for their social conscience: “It is not often that we see an alcoholic beverage manufacturer coming to educate people in how to drink responsibly. We are very pleased to have you here today and we look forward to a closer working relationship with you”.

Additionally, Guinness Nigeria has produced accompanying written materials on sensible drinking and the adverse affects of drinking. They have made these materials readily available to the university, supplying them to the counselling teams and enabling the university to upload the materials to their intranet in order to extend their reach to second and third year students.

For more information on Guinness Nigeria’s DRINKIQ workshops read the full article at: http://worldstagegroup.com/index.php?active=news&newscid=14284&catid=37

Drinks.ng supplies the full range of Guinness Nigeria products; for more information on our comprehensive suite of beverages see our website: drinks.ng

By Stephanie Murphy

 

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Guinness announces turnover of N53 Billion in the second half of 2013

Guinness Nigeria | www.drinks.ng

Guinness announces turnover of N53 Billion in the second half of 2013

Beer Giant Guinness reports a turnover of N53 Billion across Nigeria for the second half of 2013; this is offset by a 22% decline in profits for the first half of the same year. Seni Adetu, CEO of Guinness Nigeria state at a conference on Monday 17th February that: “Our performance for the period ended 31st December 2013 has been impacted by the contraction of the beer market for most of the half and the shift towards the value segment mainly due to affordability and discretionary income trends. Contributions from strategic innovations have remained strong, as we continue to invest in our sales organization to drive increased distribution and to support long term growth. Our marketing investments behind our brands also continued as we launched a new campaign for Guinness FES and Harp.”

For more information on Guinness Plc. read the full article at: http://www.nigerianbulletin.com/threads/guinness-nigeria-records-n53-billion-turnover-in-six-months.46692/

Drinks.ng supplies the full range of Guinness Plc. products; for more information on our comprehensive suite of beverages see our website: Drink.ng