First Time In 30 Years; Guinness Reports Annual Loss

Guinness Nigeria Plc on Tuesday reported a loss for the year ended June 30, 2016. Document filed with the Nigerian Stock Exchange (NSE) revealed that turnover declined by 14 percent from N118.49 billion recorded in 2015 to N101.973 billion in 2016. 

Operating profit dropped by 72 percent from N15.667 billion to N4.415 billion.

The company ended the year with a pretax loss of N2.347 billion and loss after tax of N2 billion, making it its first full-year loss in 30 years, compared with pretax profit of N10.795 billion and profit after tax of N7.79 billion recorded in 2015.

Speaking to reporters, the Managing Director/Chief Executive Officer, Guinness Nigeria Plc, Mr. Peter Ndegwa, said that the challenging economic environment coupled with Naira devaluation had a profound impact on Guinness Nigeria’s overall performance.

“Our performance this year was impacted by two major factors, one being the very tough economic challenges around consumer spending, driving consumer preferences towards value brands across the sector, the other, and more significant factor being the effect of foreign exchange policy and the devaluation of the Naira."