Guinness Nigeria has announced on 20 September that it made total sales of N102 billion from sales of beer as well as International Premium Spirits (IPS) like Johnnie Walker and Baileys, following its acquisition of distribution rights from its parent company, Diageo in January this year. This is first full year result from Guinness since it made the acquisition. However, Guinness also announced that it made a loss after tax of N2 billion for the period ended June 30 2016.
“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 FX policy and the devaluation of the Naira. When you take out the impact of the latter, our underlying performance for the year was broadly in line with the prior year in spite of the pressure on the top line” said Peter Ndegwa, Managing Director/Chief Executive Officer, Guinness Nigeria Plc
In January 2016, Guinness Nigeria acquired the distribution rights for Diageo, its parent company’s International Premium Spirits (IPS) like Johnnie Walker, Ciroc and Baileys in Nigeria. Also in the course of the financial year, the company acquired the rights to distribute brands from India’s United Spirits Ltd (USL) for brands like McDowell’s whisky. Guinness has also announced an investment of 12 million pounds into its Benin plant for the manufacture of mainstream spirits, locally produced spirits that are offered at a lower price point when compared to imported spirits.
Ndegwa explained that ““Following the acquisition of distribution rights for IPS and USL brands, we are the first and only total beverage alcohol (TBA) business in Nigeria offering the widest range of drinks – from adult premium non-alcoholic drinks (APNADS) to lager, stout, mainstream spirits and IPS. This puts us in a great position to continue to offer consumers quality brands, giving them a choice at every category and price point.”
Chairman, Guinness Nigeria Plc,Babatunde Savage, also speaking the company’s performance expressed the consolation that despite the continuing deterioration in the operating environment, the core brands of Guinness FES and Malta Guinness are growing.
“We now also have a strong participation in the growing value segment of the market through Satzenbrau and Dubic. 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.”
He assured that despite the economic headwinds, Guinness will continue to be deeply committed to doing business the right way, guided by the company’s Code of Business Conduct and ensuring that it engages, in the right way, with everyone that comes into contact with Guinness.
