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Guinness Reports First Annual Loss In 30 Years - Business (4) - Nairaland

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Re: Guinness Reports First Annual Loss In 30 Years by helovesme(f): 2:08pm On Sep 21, 2016
Truth234:


So paying taxes is not contributing to the economy? Only when they generate foreign exchange? This is what is wrong with this nation, over dependent on foreign exchange due to almost not existing manufacturing sector. The exact reason Guinness is not sourcing locally because local companies do not have the capacity. Until the Fg aggressively spend to diversify the economy, this will continue. Guinness is not the issue here, FG is please.

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:
Wow
I love it

I hope things gets worse and harder

Why?
Re: Guinness Reports First Annual Loss In 30 Years by Charly68: 3:02pm On Sep 21, 2016
AntiWailer:

lol.

that is very dull of you.

GEJ was voted out due to incompetence and corruption.

Sane minds thank God GEJ and his looting team are not there when this global recession (Global Yes) started.

They would have sold the country and shared the loot.

Why won't guiness record low sale and loss, No be person way don chop go drink Stout ? You are absolutely on point.

Is it not common sense ?
Re: Guinness Reports First Annual Loss In 30 Years by Charly68: 3:04pm On Sep 21, 2016
AntiWailer:

lol.

that is very dull of you.

GEJ was voted out due to incompetence and corruption.

Sane minds thank God GEJ and his looting team are not there when this global recession (Global Yes) started.

They would have sold the country and shared the loot.

Why won't guiness record low sale and loss, No be person way don chop go drink Stout ? Gbam! You hit the point with no sentiment.

Is it not common sense ?
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:


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.


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? shocked

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:
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!

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:



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? shocked

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?

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:


Ask yourself how one can hate a man he vigorously campaigned and voted for? Please advise you open your mind and accept Buhari for want he is , a visionless leader armed with poor Judgement
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:
Gbam! you can't have have said it any better

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:


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.



don't mind them. modern day slavery. can they try that in a civilised country

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Re: Guinness Reports First Annual Loss In 30 Years by helovesme(f): 4:21pm On Sep 21, 2016
Truth234:

We have also started to see early signs that our decisions to acquire the distribution rights in Nigeria to the International Premium Spirits brands of Diageo and to invest in local capacity for spirits manufacturing are the right ones for the business.”

http://investorsking.com/guinness-reports-first-annual-loss-in-30-years/

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:


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.

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:


Why?

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:
It has been very challenging for companies in Nigeria due to the scarcity and high costs of forex to source for raw materials and those that cannot cope are folding up.

Lafarge recorded a 30 billion naira half-year loss in july meanwhile they made about 27 billion naira after-tax profit around the same time last year. Last month MTN recorded about $350 million half-year loss.

I'm saying it for the umpteenth time, we need a qualified and competent economic team that is focused on favorable monetary regulations, job creation and diversification of the economy.

The incompetence of the present economic team led by a lawyer is glaring for all to see even to the blind. Forex is scarce, unemployment is high, job loss and inflation is on the increase, standard of living and purchasing power is low and the economy is on the verge of extinction

In fact, Buhari and APC should 'go and die'. We are tired already!!

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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