POOR START FOR GUINNESS NIGERIA

Guinness Nigeria PLC had a relatively poor first quarter to September 2015 or so the figures released last week show.
From the figures, Guinness Nigeria had real issues with input costs and overheads at a time when core revenue grudgingly rose by 3.3% to N21741.8m from N21047.8m.
In the first place, cost of producing the goods sold within the quarter increased by 18.5% to N12437.2m from N10499.9m.
Secondly, overheads that is distribution, marketing and administration costs combined, closed the quarter 20.9% up at N8001.4m compared to N7837.9m previously.
To make matters worse, income from other sources dropped by 25.3% to N144.2m from N193.1m  by September 2014.
In the case of Guinness Nigeria though, unlike for many companies in today's Nigeria, finance charges decreased by 1.16% from N940.7m to N929.8m.
However given the massive growths in direct and indirect costs already recorded, lower finance cost offered little succour. In the end, Guinness Nigeria's profit before tax tumbled by 73.6% to N517.6m from N1962.3m.
In more dramatic terms, it thus ended the quarter with only N2.36 gain on each N100 income compared to N9.24 previously.
HENCE:
* Much as it looks like Guinness Nigeria is gradually staying atop its liquidity problems, more cost control and more credit control may be inevitable
* This is hoping too that the company's recent foray into the spirit market delivers on management expectations early enough to make a difference this financial year

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