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Nairaland Forum / Nairaland / General / Business / Guinness Reports First Annual Loss In 30 Years (15356 Views)
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Re: Guinness Reports First Annual Loss In 30 Years by helovesme(f): 2:08pm On Sep 21, 2016 |
Truth234: The main issue here isn't taxes but forex. Forex as stated by Guiness is main reason for the poor results in the reported financial year. Guiness has traded profitably in nigeria for many, many, many years yet it imports most of its raw materials from outside nigeria. What would it have cost them to open a subsidiary specifically dedicated to grow sorghum and other food ingridrients needed for its brew? This subsidiary company would have catered exclusively for Guinness and would have meant they won't have to import all its raw materials from outside nigeria. I do agree that the FG has its own faults. Ministers are supposed to lobby these big corporates into investing in nigeria. If 60% or more of your products are consumed in just one country, it only makes sense to source your raw materials from that same country. 1 Like |
Re: Guinness Reports First Annual Loss In 30 Years by emilyone(f): 2:16pm On Sep 21, 2016 |
OlajumokeBread: Why? |
Re: Guinness Reports First Annual Loss In 30 Years by Charly68: 3:02pm On Sep 21, 2016 |
AntiWailer: |
Re: Guinness Reports First Annual Loss In 30 Years by Charly68: 3:04pm On Sep 21, 2016 |
AntiWailer: |
Re: Guinness Reports First Annual Loss In 30 Years by Charly68: 3:09pm On Sep 21, 2016 |
I think Guiness said they will soon starts exporting their products to South Africa,may be the idea will boost their sales in the next one year. Nigerians has no money to drink alcohol again. This is a spiritual benefit to the nation because corruption & immoralities induced by alcoholism will reduce to a large extent.. God is answering some people's prayer even in this era of economic recession. WAO! |
Re: Guinness Reports First Annual Loss In 30 Years by Gerrard59(m): 3:26pm On Sep 21, 2016 |
helovesme: It's not Guinness responsibility to operate a sorghum farm. Diageo is into drinks production not agro processing. It's the responsibility of smart entrepreneurs to supply Diageo raw materials from Nigeria. However, the business environment isn't not conducive. How can it be? When someone spends half of his/her revenue on diesel every week? Because an automaker is complaining of lack of home grown raw materials doesn't mean it should delve into steel manufacturing. It's called division of labour. What stops you and potential partners from cultivating sorghum and supply to Guinness according to their specifications? Charly68: So Malta Guinness causes immoralities? What about moderation? Do you know the amount of people who depend on Diageo and its subsidiaries for a living directly and indirectly? I wonder the village you emanated from. |
Re: Guinness Reports First Annual Loss In 30 Years by folasayolyn(f): 3:29pm On Sep 21, 2016 |
[quote author=helovesme post=49551745] The main issue here isn't taxes but forex. Forex as stated by Guiness is main reason for the poor results in the reported financial year. Guiness has traded profitably in nigeria for many, many, many years yet it imports most of its raw materials from outside nigeria. What would it have cost them to open a subsidiary specifically dedicated to grow sorghum and other food ingridrients needed for its brew? This subsidiary company would have catered exclusively for Guinness and would have meant they won't have to import all its raw materials from outside nigeria. I do agree that the FG has its own fault. Ministers are supposed to lobby these big corporates into investing in nigeria. If 60% or more of your products are consumed in just one country, it only makes sense to source your raw materials from that same country. Gbam! you can't have have said it any better |
Re: Guinness Reports First Annual Loss In 30 Years by helovesme(f): 3:51pm On Sep 21, 2016 |
Gerrard59: In business, every country you operate in comes with its challenges. So you treat each country and challenge differently. Diageo - the parent company of the Guiness brand and its other drinks has made BILLIONS and are still making BILLIONS from the nigerian market. As they are aware that the bulk of their annual turnover is from the nigerian market, it wont have cost them anything to open a wholly owned subsidiary company to handle the cultivation of all the sorghum it needs to brew in nigeria knowing fully well that there are no companies in nigeria to produce the sorghum it so badly needs. Companies come up with such arrangemnets all the time. if they had done so, their profits would not have suffered such major hit as reported in the company's financials. even if they were not open to the idea of cultivating their own sorghum, what about the idea of lobbying one of the state governments or the federal government and indicating their interest of pratonising a sorghum plantation in nigeria if the government can invest in one or come up with favourable policies to encourage agricultural entrepreneurs. Companies around the world lobby politicans/governments to come up with policies to favour their core trading activity. the country's forex policy doesnt favour them neither does all the huge custom/import duties. with such loss (the 1st in 30 years), do not be surprised to hear in the next few months/years that Guiness has restrategised and they are sourcing locally all their raw materials from the nigerian market. |
Re: Guinness Reports First Annual Loss In 30 Years by amarilo: 3:52pm On Sep 21, 2016 |
idupaul:If you truely voted for him your are vissionless like him. |
Re: Guinness Reports First Annual Loss In 30 Years by helovesme(f): 3:55pm On Sep 21, 2016 |
folasayolyn: thank you oh jare. very little of the Guiness produced in nigeria is exported which means there are no forex earnings for nigeria. most of their raw materials are imported which means a loss of forex earnings for nigeria. can you see how these companies are milking the nigerian economy? declaring huge profit every year and remitting most of their profits to their parent company in europe. |
Re: Guinness Reports First Annual Loss In 30 Years by folasayolyn(f): 4:06pm On Sep 21, 2016 |
helovesme: don't mind them. modern day slavery. can they try that in a civilised country 1 Like 1 Share |
Re: Guinness Reports First Annual Loss In 30 Years by helovesme(f): 4:21pm On Sep 21, 2016 |
Truth234: Gerrard59 see them already restrategising and talking about INVESTING LOCALLY in spirits manufacturing. i wonder if they had previous plans of importing already bottled up spirits in the first place |
Re: Guinness Reports First Annual Loss In 30 Years by Nobody: 4:31pm On Sep 21, 2016 |
helovesme:what about the earnings that accrued to your country, what was it used for? owambe and Range rover. |
Re: Guinness Reports First Annual Loss In 30 Years by OlajumokeBread(f): 6:17pm On Sep 21, 2016 |
emilyone: I want you to enjoy Buhari |
Re: Guinness Reports First Annual Loss In 30 Years by metallisc(m): 6:25pm On Sep 21, 2016 |
pxDharniel:
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Re: Guinness Reports First Annual Loss In 30 Years by Peterwins(m): 7:59pm On Sep 21, 2016 |
I guess an upward revaluation of their fixed assets is required. It will give a fair market / current market price of their fixed assets which will lead to capital gains (though an analysis should be carried out on the effects of capital gains tax on upward revaluation). They may not have declared a loss if an upward revaluation of their fixed assets was carried out, since they still had an operating profit of N4.4Billion. PS: I have tried to download their audited financial statements to buttress my points but to no avail. |
Re: Guinness Reports First Annual Loss In 30 Years by calcal: 8:11pm On Sep 21, 2016 |
That's good for the society, less drunk drivers on the road |
Re: Guinness Reports First Annual Loss In 30 Years by justice2100: 10:35pm On Sep 21, 2016 |
Positive! Moral wise that is. |
Re: Guinness Reports First Annual Loss In 30 Years by fullz: 12:35am On Sep 22, 2016 |
Buhari is working hard to fix tge economy. Give him time. |
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