Guinness Nigeria has suffered some loss in its profit sheet with a drop from N101.4bn in 9M 2019 to N96.0bn.
The decline in revenue was driven by a confluence of several factors. Guinness remains the most affected brewer from the change in excise duty calculation. The company’s portfolio consists of both beer (Excise: Q3 2019–N3,000/hl Q3 2020 – N3,500/h) and spirits (Excise: Q3 2019 – N15,000/hl Q3 2020 – N17,500/hl) making it more exposed to the excise changes. In addition, on-trade channels were shut for the final week of the quarter due to lockdown measures to control coronavirus spread, thus, affecting volume growth. These headwinds combined to mute the impact of price increases earlier implemented by the company.
The decline in revenue was driven by a confluence of several factors. Guinness remains the most affected brewer from the change in excise duty calculation. The company’s portfolio consists of both beer (Excise: Q3 2019–N3,000/hl Q3 2020 – N3,500/h) and spirits (Excise: Q3 2019 – N15,000/hl Q3 2020 – N17,500/hl) making it more exposed to the excise changes. In addition, on-trade channels were shut for the final week of the quarter due to lockdown measures to control coronavirus spread, thus, affecting volume growth. These headwinds combined to mute the impact of price increases earlier implemented by the company.