Guinness may report profit decline, as innovation brands surge

Guinness Nigeria Plc has notified The Nigerian Stock Exchange (NSE) that it has scheduled a Board of Directors meeting to hold on Thursday, 4th September 2014. The audited financial statements of the company for the year ended 30th June 2014 as well as the declaration of dividend are on the meeting agenda.

Guinness Nigeria reported 11.4% decline in revenue for the nine months ended March 31st, 2014. Even though, the company’s management had expressed optimism that its performance will improve in the last quarter of its financial year, it is expected that the trend will affect the full year results.

Commenting on the third quarter results in its press announcement at the end of April 2014, Seni Adetu, Managing Director/Chief Executive Officer, Guinness Nigeria Plc, had said “In spite of the positive contributions from strategic innovations like Orijin Bitters, Snapp and Satzenbrau to net sales, high finance costs in an increasing interest rate environment negatively impacted overall profitability. We will continue to invest in our brand portfolio and optimization of our market logistics, expecting that these and other initiatives will lead to improved revenues and overall performance.”

In 2011, the leading brewer announced an investment of N52 billion in its business to expand production and route to market infrastructure for its premium and innovation brands. While the premium brands have remained a strong portfolio of consumer brands holding their own against competition, the innovation brands are exceeding forecasted growth numbers, gaining significant market share as is very visible on the table tops in leading bars in Lagos, Ibadan, Port Harcourt and other cities where these new brands have been launched.

The company confirmed that the sale of its innovation brands like Orijin Bitters, Snapp, Alvaro, Satzenbrau and Orijin Ready to drink were still up for the second consecutive quarter. Adetu observed that the business is upbeat because the impressive performance of recently introduced innovation brands will be a big boost for Guinness Nigeria’s future performance. “That the best sales news is from innovation brands is cheering because the investment committed to its development is stimulating growth. This will ensure value creation for our shareholders in no distant future. The management and board of Guinness Nigeria Plc remain confident in our range of leading brands, our continued focus on distribution and our investment in our brands and people to deliver long term growth for the business.”

Guinness Nigeria Plc was listed on the Nigerian Stock Exchange in 1965. It has a shareholder base of over 75,000 shareholders, and is one of the foremost quoted companies in Nigeria.

Harsh economic climate currently experienced in Jona's adminstration

I am hopeful that Nigeria will be out of the woods soon - and manufacturing concerns like Guinness can become more cost-effective by saving hundreds of millions and even billions in energy cost. It is not a Jonathan thing, government is continuity.