Consumer Goods
Guinness’ parent company expects alcohol sales to improve as restaurants and bars gradually reopen
Diageo Plc expects a sequential improvement in organic net sales and operating profit compared to the first half of fiscal 2020.
The parent company of Guinness Nigeria Plc, Diageo Plc disclosed that it expects sales in July to December to improve, compared to the first six months of the year as bars and restaurants reopen following coronavirus lockdowns.
This was disclosed by the CEO of Diageo Plc, Ivan Menezes, in a press release by the company today.
Ivan Menezes said that Diageo has made a good start to the fiscal year 2021, with sequential improvement in the Group’s performance across all regions, driven by strong execution, robust demand in the off-trade channel, and the gradual re-opening of the on-trade channel in most markets.
READ: Guinness Nigeria Plc changes CEO again, now four in 5 years!!!
However, as the pace of recovery from the COVID-19 pandemic, and easing of government restrictions varies by region and market, the CEO expressed optimism in the US business, as it is performing strongly ahead of expectations, reflecting resilient consumer demand, as the spirits category continues to gain share within the total beverage alcohol market.
In Europe, off-trade demand remains robust, and the on-trade channel has largely re-opened with the easing of lockdown measures in most countries, although the risk of additional restrictions remains where infection rates are worsening.
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While speaking about the performance of Diageo’s subsidiaries operating outside of the U.S. and Europe, Mr. Menezes maintained a cautious stance; “the on-trade has also begun to re-open in Africa and other regions, and as such, we expect the pace of recovery in those markets to be more gradual, as travel retail continues to be severely impacted.”
(READ MORE: FG to facilitate removal of tax on minimum wage, as NLC suspends strike)
Outlook for the first half of the fiscal year 2021
On the outlook for the first half of the fiscal year 2021, Diageo Plc expects a sequential improvement in organic net sales and operating profit, compared to the second half of fiscal 2020, but organic net sales and margin dilution in the first half of the fiscal year 2021, is expected to be lower than the first half of the fiscal year 2020.
Menezes noted that the resilience of the Group’s business and trade segment in the current challenging operating environment is really impressive. Though recovery is uncertain in the near-term, he is confident in the company’s strategy, coupled with its long-term fundamentals, as enabling factor to emerge stronger.
READ: Guinness Nigeria boss reveals factors pulling company’s profit
Diageo products are sold in more than 180 countries around the world, it is a global leader in beverage alcohol, with an outstanding collection of brands including Johnnie Walker, Crown Royal, JεB, Buchanan’s and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray, and Guinness.
Diageo Overseas holdings limited, is the parent organization of Guinness Overseas Limited. Guinness Overseas Limited, as of 30 June 2020, owned 50.18% of the issued share capital of Guinness Nigeria Plc.
Consumer Goods
NSE CGI depreciates by 8% in February, recording highest decline since March 2020
The NSE Consumer goods index shed a total of 49.84 index points in February, the highest loss on the index since March 2020.
The Nigerian Stock Exchange Consumer Goods Index (CGI), an index that tracks the performance of consumer goods companies, depreciated by 8.12% in the month of February at the back of sell-offs and building negative sentiments in the market.
A preview of the performance of the index revealed that as of the close of trading activities on Friday 26th February 2021, the index stood at 563.85 index points, from 613.69 index points at the open of trade for the month.
In line with this, the Consumer Goods Index shed a total of 49.84 index points – the highest since March 2020 (-132.53 index points)- as wary investors offload shares of top consumer goods company on NSE, leading to the decline in the share price of Nestle, Dangote Sugar, Flour Mills, NB and eight (8) others.
Source:Tradingview
What you should know
- The NSE Consumer goods Index was designed to provide an investable benchmark to capture the performance of companies in the consumer goods sector. The index comprises the most capitalized and liquid companies in food, beverage, and tobacco.
- The index is based on the market capitalization methodology, as it tracks the performance of fifteen consumer goods companies on the Nigerian Stock Exchange which includes, Nestle, Nigerian Breweries (NB), Dangote Sugar, and Flour Mills.
- The overall performance of the companies was bearish, as the index closed on a negative note in the month of February with 12 losers relative to 3 gainers.
- NNFM (-27.48%) led the losers’ chart, while MCNICHOLS (+56.86%) was the top gainer in the month of February, followed by GUINNESS (+21.32%).
Top gainers
- MCNICHOLS up 56.86% to close at N0.8
- GUINNESS up 21.32% to close N23.05
- UNILEVER up 0.74% to close at N13.95
Top losers
- NNFM down by 27.48% to close at N7.02
- VITAFOAM down by 22.89% to close at N7.75
- CHAMPION down by 18.97% to close at N2.52
- NB down by 17.46% to close at N52
- FLOURMILLS down by 16.86% to close at N28.85
Consumer Goods
Unilever to spin off Tea business such as Lipton, Brooke Bond in major restructuring
Unilever wants to split its Tea business as a separate entity.
Martin Otis
September 28, 2020 at 11:47 pm
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