Guiness Nigeria released audited reports of its last quarter audits which ended in June 30th 2016 and as expected the books were not looking good, the multinational giant lost 14 percent in profits dropping from N118.5 billion in 2015 to N101.97 billion in 2016.
In an attempt to keep shareholders happy, the board of directors has decided to dip into the company reserves to pay a dividend of 50kobo per share as Guinness will distribute N752.94 million as gross dividends for 2016 compared with N4.82 billion distributed in 2015, we can’t even begin to quantify the weight of this loss as Guinness records its first loss in three decades.
The Managing Director of Guiness Nigeria Plc, Peter Ndegwa blamed the loss on the combination of a tough economic environment and the challenges with naira devaluation. He noted
“Our performance this year was impacted by two major factors –one being the very tough economic challenges around consumer spending, driving consumer preferences towards brand across the sector and the other more significant factor being the effect of foreign exchange policy and the devaluation of the Naira.”
We do pray the hard times come to an end fast- cos soon we might not even be able to drink to help us just manage!
Written by Kike Olowu