Shareholders of Guinness Nigeria Plc today approved the N3.32 billion declared by the Company at its 69th Annual General Meeting held in Abuja. Despite the challenging business environment, the Company posted a N5.5 billion Profit After Tax (PAT), a revenue of N131.4billion. The Company’s Operating Profit for the year ended June 2019 stood at N8.9billion.
Addressing shareholders at the AGM, the Chairman of the Board of Directors, Mr. Babatunde Savage appreciated the continued support of the shareholders despite the prevailing economic challenges. Savage maintained that Guinness Nigeria would continue to define its operations along the line of sustainability and progressively rework its models in line with the current socio-economic realities.
Savage explained that, “our performance indicate that we are consistently focused on delivering both top line growth and margin expansion while also increasing investment behind our brands. Guinness Nigeria Plc is determined to ensure sustained and steady growth in the company’s operations to achieve improved returns on investments.”
In his remarks on the efforts of the Federal government at stabilizing the economy, Savage acknowledged the significant improvements noticed in recent past. “Over the past year there has been slight positive improvements in Nigeria’s macro-economic indices. Headline inflation rate has declined from 12.08% in late 2018 and moderated at between 11.0% -11.4% in the first half of 2019. There was also relative exchange rate stability during the year under review as a result of the sustained access to foreign exchange brought about by the continued operation of the Central Bank of Nigeria Investors and Exporters Window,” he stated.
On his part the Managing Director/CEO, Baker Magunda, said, “Although the brewing industry has witnessed significant incursions from ambitious brands, Guinness Nigeria has maintained its leading role in the industry. Guinness Nigeria has remained profitable during the year under review as reflected in the financial results contained in the Annual Report published as part of this year’s Annual General Meeting.”
“The year under review witnessed the launch of three new products to expand the brand categories for profitability as the brands deliver impressive volumes. Baileys Delight was launched in January 2019, Guinness Gold launched in March 2019 while Orjin Herbal Gin was launched in April 2019.”
As part of its social responsibility, Guinness Nigeria continues to contribute its quota to the socio-economic development of the country through various initiatives. The Diageo Africa Water of Life Programme provides clean and portable water across communities to minimize cases of water-borne diseases and improve the wellbeing of the people. Similarly, the Guinness Eye Centre continued to save sights of the vulnerable across communities. During the year, Guinness Nigeria donated NGN 10 Million to the Eye Centre at the Lagos University Teaching Hospital and the Eye Centre in Onitsha, Anambra.
The Company has continued with its flagship responsible drinking Ember Months’ Campaign in partnership with the Federal Road Safety Commission. The partnership has also been extended to the Lagos State Ministry of Transportation with over 800 commercial drivers and road transport officials trained. In terms of its commitment to the local content policy of the Federal Government aimed at diversifying the economy, Guinness Nigeria in January 2019 launched its agricultural scheme called “Grow with Nigeria.” The scheme will ensure that Guinness Nigeria is able to source its sorghum requirement from local farmers.
“We have made deliberate choices in where we are putting our investments as a business –in our brands and in our people. We are confident that these investments will yield dividends and improve shareholder return in the years to come,” Magunda stated.