Guinness Suffers Revenue Loss, As Profit Crashes In Q2 2020

Guinness Nigeria suffered revenue loss in the second quarter of 2020 after failing to surpass the NGN131.4 billion it generated in the corresponding period of 2019. According to the financial statements for the period year ended June 30, 2020, the company reported that it generated NGN104.3 billion in Q2 2020.

During the same period the revenue dropped, Guinness Nigeria reduced its cost of sales, which is the cost of production, from the NGN91.3 billion it spent in Q2 2019, to NGN71 billion it disbursed for production in the second quarter of this year. The reduction, however, didn't stop the gross profit from crashing.

[READ ALSO: How Nigeria's Capital Inflow Declined By 78.60%, What Happens Next?]

In the finances seen by AllNews, Guinness Nigeria gross profit stood at NGN33.3 billion as at the end of June 30, 2020, the second quarter of this year, falling behind the NGN40.1 billion it generated in the corresponding period of Q2 2019. The reduction in the company's gross profit could be linked to the shutdown of business activities caused by the nationwide lockdown directed by President Muhammadu Buhari to curb COVID-19.

The company also recorded a loss in its Operating profit which increased from the NGN8.9 billion of Q2 2019 to NGN12.8 billion in Q2 2020. Also, Guinness Nigeria reported a loss in its Profit Before Tax, after recording NGN17 billion in the second quarter of 2020, more than the loss of NGN7.1 billion of Q2 2019.

It was also gathered that the company recorded a loss in its Profit After Tax in Q2 2020, as the loss increased to NGN12.5 billion, against the NGN5.4 billion it recorded in the corresponding period of last year.