Guinness Nigeria Plc

Unaudited Financial Statements

For the period ended 30 September 2023

Guinness Nigeria Plc

Financial Statements - 30 September 2023

Unaudited Interim Financial Statements

Contents

Page

Condensed Statement of Financial Position

1

Condensed Income Statement

2

Condensed Statement of Comprehensive Income

3

Condensed Statement of Changes in Equity

4

Condensed Statement of Cash Flows

5

Notes to the Condensed Financial Statements

6

Guinness Nigeria Plc

Financial Statements - 30 September 2023

Unaudited Interim Financial Statements

Statement of Financial Position

As at 30 September

ASSETS

Notes

30 Sep 2023

30 Jun 2023

N'000

N'000

Non-current assets

Property, plant and equipment

13(a)

99,538,809

99,177,647

Right-of-use assets

22(a)

185,439

217,574

Intangible assets

14

537,518

549,950

Prepayments

15

-

-

Total non-current assets

100,261,766

99,945,171

Current assets

Inventories

16

34,926,999

34,469,527

Trade and other receivables

17(a)

29,962,226

13,213,407

Prepayments

15

1,299,139

402,895

Restricted cash

18(a)

1,592,461

1,592,461

Cash and cash equivalents

18(b)

76,323,062

92,124,683

Total current assets

144,103,887

141,802,973

Total assets

244,365,653

241,748,144

Equity

Share capital

1,095,191

1,095,191

Share premium

47,447,029

47,447,029

Retained earnings

10,478,449

7,882,396

Total equity

59,020,669

56,424,616

Liabilities

Non-current liabilities

Lease liabilities

22(b)

159,713

154,272

Employee benefits

1,189,442

1,155,169

Deferred tax liabilities

479,144

479,144

Total non-current liabilities

1,828,299

1,788,585

Current liabilities

Current tax liabilities

12(b)

6,478,308

5,256,637

Dividend payable

20

1,668,896

1,695,832

Loans and borrowings

21(a)

58,995,534

63,755,939

Lease liabilities

22(b)

30

29

Contract liabilities

7(b)

232,635

1,590,422

Trade and other payables

23

116,141,282

116,

111,236,084

Total current liabilities

183,516,685

112,

183,534,943

Total liabilities

185,344,984

185,323,528

Total equity and liabilities

244,365,653

241,748,144

Approved by the Board of Directors on 24 October 2023 and signed on its behalf by:

Dr Omobola Johnson (Chairman)

FRC/2018/IODN/00000018366

John Musunga (Managing Director)

FRC/2023/PRO/DIR/003/432832

Emmanuel Difom (Finance & Strategy Director)

FRC/2022/PRO/ICAN/001/00000024174

The notes on pages 6 to 19 are integral parts of these financial statements.

1

Guinness Nigeria Plc

Financial Statements - 30 September 2023

Unaudited Interim Financial Statements

Income Statement

For the period ended 30 September

Notes

Quarter to date

Year to date

Quarter to date

Year to date

30 September

30 September

30 September

30 September

2023

2023

2022

2022

N'000

N'000

N'000

N'000

Revenue

7(a)

59,536,477

59,536,477

52,849,881

52,849,881

Cost of sales

(41,398,835)

(41,398,835)

(34,610,404)

(34,610,404)

Gross profit

18,137,642

18,137,642

18,239,477

18,239,477

Other income

8(a)

1,395,931

1,395,931

660,382

660,382

Marketing and distribution expenses

8(b)

(8,313,860)

(8,313,860)

(9,414,001)

(9,414,001)

Administrative expenses

(3,345,581)

(3,345,581)

(3,580,995)

(3,580,995)

Profit from operating activities

7,874,132

7,874,132

5,904,863

5,904,863

Finance income

9(a)

563,929

563,929

597,504

597,504

Finance expense

9(b)

(4,620,337)

(4,620,337)

(2,459,991)

(2,459,991)

Net finance expense

(4,056,408)

(4,056,408)

(1,862,487)

(1,862,487)

Profit before income tax

3,817,724

3,817,724

4,042,376

4,042,376

Tax expense

12

(1,221,671)

(1,221,671)

(1,293,562)

(1,293,562)

Profit for the period

2,596,053

2,596,053

2,748,814

2,748,814

Earnings per share

Basic and diluted earnings per share (kobo)

119

125

The notes on pages 6 to 19 are integral parts of these financial statements.

2

Guinness Nigeria Plc

Financial Statements - 30 September 2023

Unaudited Interim Financial Statements

Statement of Comprehensive Income

For the period ended 30 September

Profit for the period

Total comprehensive income for the period

Quarter to date

Year to date

Quarter to date

Year to date

30 September

30 September

30 September

30 September

2023

2023

2022

2022

N'000

N'000

N'000

N'000

2,596,053

2,596,053

2,748,814

2,748,814

2,596,053

2,596,053

2,748,814

2,748,814

The notes on pages 6 to 19 are integral parts of these financial statements.

3

Guinness Nigeria Plc

Financial Statements - 30 September 2023

Unaudited Interim Financial Statements

Statement of Changes in Equity

For the period ended 30 September

Notes

Balance at 1 July 2022

Total comprehensive income

Profit for the period

Total comprehensive income for the

period

Transaction with owners, recorded

directly in equity

Unclaimed dividend written back

20

Share-based payment charge

Share-based payment recharge

Total transactions with owners

Balance at 30 September 2022

Balance at 1 July 2023

Total comprehensive income

Profit for the year

Total comprehensive income for the

period

Transaction with owners, recorded

directly in equity

Share-based payment charge

Share-based payment recharge

Total transactions with owners

Balance at 30 September 2023

Share

Share

Share

Retained

Total

based

capital

premium

payment

earnings

equity

reserve

N'000

N'000

N'000

N'000

N'000

1,095,191

47,447,029

-

41,437,171

89,979,391

-

-

-

2,748,814

2,748,814

-

-

-

2,748,814

2,748,814

-

-

-

200,000

200,000

-

-

57,814

-

57,814

-

-

(57,814)

-

(57,814)

-

-

-

200,000

200,000

1,095,191

47,447,029

-

44,385,985

92,928,205

1,095,191

47,447,029

-

7,882,396

56,424,616

-

-

-

2,596,053

2,596,053

-

-

-

2,596,053

2,596,053

-

-

35,735

-

35,735

-

-

(35,735)

-

(35,735)

-

-

-

-

-

1,095,191

47,447,029

-

10,478,449

59,020,669

The notes on pages 6 to 19 are integral parts of these financial statements.

4

Guinness Nigeria Plc

Financial Statements - 30 September 2023

Unaudited Interim Financial Statements

Statement of Cash Flows

For the period ended 30 September

Notes

3 Months Ended

3 Months Ended

30 September 2023

30 September 2022

N'000

N'000

Cash flows from operating activities

Profit before income tax

3,817,724

4,042,376

Adjustments for:

Depreciation of property plant and equipment

13(a)

2,418,535

2,197,224

Depreciation of right-of-use assets

22(a)

32,135

37,312

Amortisation of intangible assets

14

35,019

39

Write-off of property, plant and equipment

13(c)

37,021

36,077

Gain on disposal of property, plant and equipment

13(c)

-

(509,928)

Impairment/(Reversal of impairment) of inventories

(220,143)

81,268

Impairment of trade and other receivables

17(b)

530

596

Long service awards

31,923

35,310

Share-based payments

35,735

57,814

Finance income

9(a)

(563,930)

(597,504)

Finance expense

9(b)

4,620,335

2,459,991

Release of other provisions

(32,243)

(12,499)

Changes in working capital:

10,212,641

7,828,076

Inventories

(237,329)

(4,999,395)

Trade and other receivables

17(b)

(16,998,618)

(4,216,556)

Prepayments

(896,244)

(722,558)

Dividend payables

20

(26,936)

(17,177)

Trade and other payables

3,452,704

6,811,346

Cash (used in)/generated from operating activities

(4,493,782)

4,683,736

Income tax paid

-

(2,721,426)

Value added tax paid

(2,046,778)

(2,932,860)

Gratuity paid

-

(3,609)

Long service awards paid

(37,051)

(53,222)

Net cash used in from operating activities

(6,577,611)

(1,027,381)

Cash flows from investing activities

Finance income received

9(a)

359,391

311,108

Proceeds from disposal of property, plant and equipment

13(c)

-

509,928

Acquisition of property, plant and equipment

13(b)

(2,511,755)

(2,002,898)

Acquisition of intangible assets

14

(11,463)

-

Net cash used in investing activities

(2,163,827)

(1,181,862)

Cash flows from financing activities

Proceeds from loans and borrowings

21(b)

439,604

3,970,304

Repayment of loans and borrowings

21(b)

(6,171,206)

(6,191,544)

Repayment of principal portion of lease liabilities

22(b)

-

(13,579)

Finance expense paid

9(b)

(1,782,389)

(666,169)

Dividends paid

20

-

-

Net cash used in financing activities

(7,513,991)

(2,900,988)

Net decrease in cash and cash equivalents

(16,255,429)

(5,110,231)

Effect of foreign exchange rate changes on cash and cash

453,808

(73,094)

equivalents

Cash and cash equivalents at 1 July

92,124,683

69,103,716

Cash and cash equivalents at 30 September

18(b)

76,323,062

63,920,391

The notes on pages 6 to 19 are integral parts of these financial statements.

5

Guinness Nigeria Plc

Financial Statements - 30 September 2023

Unaudited Interim Financial Statements

Notes to the Financial Statements

For the period ended 30 September

Note

Page

Note

Page

1

Reporting entity

7

15

Prepayments

14

2a

Basis of preparation

7

16

Inventories

14

2b

Going concern basis of accounting

7

17

Trade and other receivables

15

2c

Securities Trading Policy

7

18

Cash and cash equivalents

15

3

Functional and presentation currency

7

19

Share capital and reserves

16

4

Use of estimates and judgements

7

20

Dividends

16

5

Changes in accounting policies

7

21

Loans and borrowings

17

6

Significant accounting policies

7

22

Leases

18

7

Revenue

8

23

Trade and other payables

19

8

Other income and marketing and

8

24

Events after the reporting date

19

distribution expenses

9

Finance income and finance expense

9

10

Profit before taxation

10

11

Personnel expenses

10

12

Taxation

10

13

Property, plant and equipment (PPE)

11

14

Intangible assets

13

6

Notes to the Financial Statements

Guinness Nigeria Plc

Financial Statements - 30 September 2023

Unaudited Interim Financial Statements

1. Reporting entity

Guinness Nigeria Plc, ('the Company'), a public Company quoted on the Nigerian Stock Exchange, was incorporated in Nigeria on 29 April 1950, as a trading company importing Guinness Stout from Dublin. The Company has since transformed itself into a manufacturing operation and its principal activities continue to be brewing, packaging, marketing and selling of of Guinness Foreign Extra Stout, Guinness Smooth, Malta Guinness, Guinness Gold, Harp Lager, Smirnoff Ice, Satzenbrau Lager, Dubic Malt, Snapp, Orijin Spirit Mixed Drink, Orijin Bitters, Smirnoff Ice Double Black with Guarana, Orijin Zero and Orijin Herbal Gin, Baileys Delight, Gordons Moringa among others.

The address of the Company's registered office is at 24 Oba Akran Avenue, Ikeja, Lagos.

2a. Basis of preparation

The interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC). The financial statements comply with IFRS as issued by the International Accounting Standards Board (IASB), and both requirements of the Financial Reporting Council of Nigeria Act and the Companies and Allied Matters Act. The financial statements were authorised for issue by the Board of Directors on 24 October 2023.

2b. Going concern basis of accounting

The financial statements have been prepared on a going concern basis, which assumes that the Company will be able to meet the mandatory repayment terms of banking facilities, trade, lease and other liabilities.

2c. Securities Trading Policy

In compliance with Rule 17.15 Disclosure of Dealings in Issuers' Shares, Rulebook of the Exchange 2015 (Issuers Rule), Guinness Nigeria Plc maintains a Dealing in Securities Code (the "Code") which guides Directors, Audit Committee members, employees and all individuals categorized as insiders as to their dealing in the Company's shares. The Code undergoes periodic reviews by the Board and is updated accordingly to comply with national and international best practice of corporate governance. The Company has made specific enquiries and given relevant notifications to all its Directors, Audit Committee members, employees and other insiders and is not aware of any infringement of the Code during the period under review.

3. Functional and presentation currency

These financial statements are presented in Naira, which is the Company's functional currency. All financial information presented in Naira (N) has been rounded to the nearest thousand unless otherwise stated.

4. Use of estimates and judgements

The preparation of the financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

5. Changes in accounting policies

There were no significant accounting policy change in the current financial year.

6. Significant accounting policies

The Company applied accounting policies consistent to those applied in the Company's financial statement as at year ended 30 June 2023.

7

Notes to the Financial Statements

Guinness Nigeria Plc

Financial Statements - 30 September 2023

Unaudited Interim Financial Statements

7. Revenue

a. Disaggregation of revenue from contract with customer

30 Sep 2023

30 Sep 2022

Nigeria

N'000

N'000

58,692,740

51,907,701

Export

843,737

942,180

59,536,477

52,849,881

b. Liabilities relating to contracts with customers

30 Sep 2023

30 Jun 2023

Contract liabilities

N'000

N'000

232,635

1,590,422

8. Other income and marketing and distribution expenses a. Other income comprises:

30 Sep 2023

30 Sep 2022

N'000

N'000

Income from leased assets

-

61,922

Sale of by-products

42,485

88,532

Gain on disposal of property, plant and equipment

-

509,928

Promisory note from EEG

1,353,446

-

1,395,931

660,382

b. Marketing and distribution expenses:

30 Sep 2023

30 Sep 2022

Marketing expenses

N'000

N'000

4,552,361

4,897,906

Distribution expenses

3,761,499

4,516,095

8,313,860

9,414,001

8

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Disclaimer

Guinness Nigeria plc published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 17:12:22 UTC.