Business News
Why we experienced profit declines- Guinness Nigeria
Guinness Nigeria Plc has identified an increase in excise duties as the main reason for the drop in its operating profit.
Guinness Nigeria Plc has attributed its N1.08 billion operating profit shortfall to the increase in excise duties and an increase in net financing costs related to short-term loans. The company’s profit declined by N1.08 billion when it dropped from N4.64 billion Half-year 2018 to N3.56 billion within the same period ended December 31, 2019.
An excise duty tax is a tax charged on goods produced within a country. The Nigerian Government increased excise duties on beer and stout by N0.30 kobo per centilitre (Cl) in 2018 and N0.35 kobo per Cl each in 2019 and 2020.
Babatunde Savage, Chairman, Guinness Nigeria
Also, Guinness Nigeria’s profit before tax dropped to N1.93 billion from N3.79 billion, decreasing by N1.86 billion. Guinness said the decline was caused by an increase in net financing costs related to short-term loans. It was reported that the cost lines grew in low single digits as improved productivity and volume-driven cost absorption mitigated inflationary pressure.
A good sign nevertheless: While Guinness’ operating profit dropped, the company’s revenue grew by only 1% to climb N68.34 billion from N67.80 billion. This, the company said mitigated the decline from the first quarter.
Guinness disclosed that due to its strong double-digit growth in brand Guinness and mainstream spirits, it was able to record the increase in its revenue. In a statement, the company said, “Together with growth in the RTD segment, this mitigated the impact of increased excise duty, and the impact of reduced exports on malts.”
[READ MORE: Fidson Healthcare returns to profitability after 2018 loss)
In his reaction to the financial statement, Guinness Nigeria’s Managing Director/Chief Executive Officer, Baker Magunda, said, “In the period under review, the company delivered results that reflected a very strong second fiscal quarter performance despite continued regulatory, competitive and inflationary challenges in the operating environment.
“I am pleased that revenue growth is in line with our strategy driven by better commercial execution and innovations.
“Despite the increase in excise duties on beer and mainstream spirits, the competitive environment was such that there was lack of pricing opportunities in the period to mitigate this.”
Magunda said Guinness would focus its strategy on key categories such as growing spirits faster, continued innovation to meet consumer needs and productivity.
Meanwhile, the chairman of the company, Babatunde Savage, spoke highly of the board’s confidence in the company’s strategy. Savage also stated that the right investment was being made to keep the company and the brand competitive in the long-term.
Business News
Lagos state moves against fake news and inciting messages merchants
The government has warned fake news and inciting message merchants to stop their evil enterprise or face legal consequences.
The Lagos State Government has warned against fake news and inciting messages as they react to videos in social media and online space, creating tension and encouraging ethnic conflicts.
This was contained in a statement that was issued by the Lagos State Commissioner for Information and Strategy, Gbenga Omotosho, on Saturday, October 24, 2020.
In the statement, Governor Babajide Sanwo-Olu urged Lagosians to disregard the videos, which are the tools of anarchists, whose plan is to create hatred and divisiveness for which Lagos is not known for.
The statement partly reads, ‘’Inciting videos of this nature are not what our land needs now, following the loss of lives and destruction that fake news, misinformation and unfounded rumours have triggered in our dear state in the last couple of days.
‘’The government appeals to Lagosians to disregard the calls of ethnic and religious jingoists as well as agents of destruction who are on a mission to destroy our state by pitching us against one another for yet to be ascertained reasons. This is a very critical moment for us as a people. It is, therefore important that we stand together and remain circumspect because the brewery of falsehood is unrelenting in its mission.’’
The commissioner said Lagos State is the melting point of various cultures, tribes and religions across Nigeria and noted we have co-existed harmoniously for ages and will continue to live together peacefully.
He pointed out that the sad incident of the past few days affected everyone who lives, trades or works in Lagos, regardless of their tribe, culture, race and religion. He said this is a time for us to empathize with one another and not listen to purveyors of evil messages, especially on social media.
Omotosho said the government will continue to protect lives and property and warned fake news and inciting message merchants to stop their evil enterprise or face the legal consequences of their destructive actions.
The attention of the Lagos State Government has been drawn to videos in social media and the online space, creating tension and encouraging ethnic conflicts.@jidesanwoolu @drobafemihamzat @gbenga_omo @gboyegaakosile @Mr_JAGss #LASG #ForAGreaterLagos pic.twitter.com/nw66YPLDXg
— The Lagos State Govt (@followlasg) October 24, 2020
Appointments
TCN MD, Sule Abdulaziz appointed Chairman of West Africa Power Pool
The acting Managing Director of TCN, Sule Abdulaziz, has been appointed the new Chairman of WAPP.
The acting Managing Director of Transmission Company of Nigeria (TCN), Sule Abdulaziz, has been appointed the new Chairman of the Executive Board of West African Power Pool (WAPP). Abdulaziz was nominated by the former Managing Director of Power Holding Company of Nigeria (PHCN), Joe Makoju, who is an honorary member of WAPP.
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This disclosure was made by TCN’s General Manager, Public Affairs, Mrs Ndidi Mbah, through a public statement in Abuja on Thursday, October 22, 2020.
In her statement, Mbah revealed that the West African Power Pool was created by Decision A/DEC.5/12/99 of the 22nd Summit of the ECOWAS Authority of Heads of State and Government, and adopted during the 29th Summit of the ECOWAS Authority of Heads of State and Government held in Niamey, Niger.
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The appointment was made during the 46th meeting of the WAPP Executive Board which was chaired by the Secretary-General of ECOWAS, Ki Sengui, and held through video conference on October 21.
The statement from Mba partly reads, “While making the nomination, Makoju noted that Abdulaziz is an expert in engineering with vast experience in the electricity sector and therefore will perform creditably as the new WAPP Executive Board Chairman.
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“His proposal was endorsed by MDs and Director Generals and other members of the board,” she said.
According to the statement, Abdulaziz in his acceptance speech thanked the board members and the honourary members for his nomination as the Chairman of the board and assured them of his total commitment to the overall objective of the regional electricity body.
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He also expressed the need to move the pool to the next level of operational efficiency and solicited the support of member utilities, especially members of the executive board in this regard.
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He urged members to ensure prompt payment of their contributions to the pool and also continue to collaborate actively with the secretariat to ensure effective and efficient coordination and implementation of all WAPP programmes.
ENDSARS
President Buhari to address Nigerians on Lekki toll plaza shootings after investigation
Minister of Sports says President Buhari will address Nigerians on the Lekki Toll Plaza shootings at the completion of investigations.
President Buhari will address Nigerians on the Lekki toll Plaza shootings, as he awaits the outcome of the investigations into the shootings of unarmed #EndSARS protesters by soldiers.
This disclosure was made by Mr. Sunday Dare, the Minister of Youth and Sports Development, during an interview with Arise TV on the unrest and uncertainties gripping Nigeria following the protests over police brutality.
READ: #EndSARS: United Nations condemns the use of excessive force by Nigerian Armed Forces
The Minister emphasized that the President during the National Security Meeting yesterday has ordered an investigation into the Lekki Toll Plaza shooting, and thereafter he would speak on the incident.
READ: #EndSARS Protests: Osinbajo commiserates with victims of Lekki shootings
What they are saying
When asked by Charles Aniagolu of Arise TV why the President hasn’t made an official statement on the unfortunate event at the Toll Plaza, Mr. Dare explained in his response that President Buhari hasn’t made a statement on the tragedy because he wants to have all the facts, which will absolutely be made public.
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“It is important to get all the facts right before we go forward. In this case, it’s going to be difficult to hide these facts because we live in a multimedia world and we have pieces of evidence and corroboration and I think it is important to get the facts right.
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“I think that’s the part the President has towed and I am sure that when the facts are made available, this President – because he has integrity – will level with the Nigerian people about what happened on Tuesday in Lekki.”
Mr. Sunday Dare said the present administration’s commitment to protecting the rights of all citizens is unshaken. He reiterated that in line with this core mandate, a presidential pronouncement was made by the Presidency to permanently dissolve the notorious SARS group.
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He disclosed that the level of responsiveness and concrete steps that the President has taken to stem down civil unrest in the country is commendable, as the #5 of 5 demands are fully accepted by the President.
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TCN MD, Sule Abdulaziz appointed Chairman of West Africa Power Pool
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