An article from Bloomberg suggest Africa (which includes Guinness Nigeria} may have missed revenue and profitability targets set for it by the parent company Diageo. Guinness has been facing a competitive beer market in Nigeria with margins dropping at an incessant rate. Here is an excerpt of the guidance for the entire Diageo group which includes comments on Africa
Diageo Plc said sales unexpectedly declined in the third quarter as revenue in every one of the Smirnoff distiller’s regions missed analysts’ estimates.
Organic net revenue fell 0.7 percent in the three months ended March 31, the London-based maker of Guinness stout said in a statement Thursday, trailing the median estimate of a 2 percent increase.
The biggest sales declines were in the Asia-Pacific region, where the company is seeking to reduce the level of surplus inventory held by wholesalers, and Latin America and the Caribbean, where consumer demand is being weighed down by currency volatility. Sales also dropped in Europe, while growth in North America and Africa was slightly below analyst estimates.