Guinness Nigeria’s First Quarter Profit Falls 2.7%

Guinness Nigeria Plc (GUINNESS), the nation’s second-largest brewer by market value, said its profit fell by 2.7 percent in first quarter as unsold goods increased.

Net income for the three-month period fell to 2.25 billion naira from 2.32 billion naira a year earlier, the company said today in a statement to the Nigerian Stock Exchange. Revenue rose 5.5 percent to 25.8 billion naira.

The value of unsold goods in the three months surged 28 percent to 22.3 billion naira, from 17.33 billion naira a year earlier, the local unit of distiller Diageo Plc said.

“Guinness may have had some problems with getting its products to the market, as shown in the company’s weak” revenue growth, Efemena Esalomi, analyst at Lagos-based Vetiva Capital Management Ltd., wrote in an e-mailed note to clients today. The turnover growth was short of a 25 percent forecast by Vetiva, she said.

Guinness was unchanged today at 210 naira in trading in Lagos. The stock has risen 10 percent this year, compared with a 19 percent fall of the Nigerian Stock Exchange All-Share Index.

To contact the reporter on this story: Vincent Nwanma in Lagos at vnwanma@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net

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