GUINNESS NIGERIA PLC IN LOSS LEAGUE.

In the financial year to June, Guinness Nigeria PLC finally landed in the loss league after years of profitable operations.

Compared to N10,795m profit before tax by 2015 financial year, a loss of N2347.2m was recorded in 2016.

This was because only 68% increase in finance income to N1185.1m gave any reason for smiles. The frown began with 13.9% drop in core revenue to N101973.0m and was compounded by a mere 5.33% decrease in cost of sale to N60162.6m and 30.7% decline in income from other sources to N500.5m.

Down the same road, administration expenses increased by 0.95% to N13008.7m despite the income decrease while distribution and marketing costs dropped by only 8.21% to N24886.6m.

With finance charges increasing by 42.5% to N7948m, in the end Guinness Nigeria recorded N2.26 loss on each N100 income compared to N9 gain in 2015 financial year.

However, in spite of this, Guinness Nigeria PLC directors opted to recommend 50k per share dividend from retained earnings from previous years.

GUINNESS NIGERIA PLC: Nbn
                         2016.          2015
Total income   103.7.       119.9
Core revenue   102.0.        118.5
Cost of sale.     60.2.          63.6
Other income.   0.50.          0.72
Distributionetc 24.9.          27.1
Administration 13.0.          12.9
Finance income 1.19.       0.71
Finance cost.     7.95.       5.58
Profit b4 tax     (2.35).     10.8
Margin %          (2.26)       9.00

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