As low sentiment continues to deepen in the Nigerian equities market, Guinness Nigeria’s share price depreciated by 19% to close at N60.50 per share, taking the market capitalization to N132.518 billion from N163.512 billion closed on the 15th of November.
The decline can be attributed to investors’ negative sentiment as the build-up to the 2023 election and the recent interest rate hike by the CBN continue to impact negatively on the market.
Hence, the sell-pressures resulted in a loss of N30.994 billion in market capitalization at the close of trading activities on the Nigeria Exchange.
Findings by Nairametrics showed that Guinness Nigeria’s shares price dropped from N74.65 per share at the start of the trading on the 16th of November to N60.50 per share, representing a 19% drop in the last two days. Guinness began the year with a share price of N39.00 and has since gained 55.1% on the price valuation.
Guinness’s financial highlights: Guinness Nigeria Plc, a subsidiary of Diageo Plc, announced its unaudited results for its first quarter period that ended 30 September 2022, revealing a 32% decrease in profit after tax to N2.748 billion from N4.043 billion in 2021.
The unaudited financial report, which was released to the Nigerian Exchange Group (NGX), indicated that revenue increased 11.33% to N52.849 billion versus the prior period of 2021 which stood at N47.469 billion.
However, the cost of sales rose by 7.38% to N34.610 billion from N32.232 billion in 2022 while marketing and distribution expenses climbed to N9.414 billion from N6.579 billion in 2021, representing a growth of 43%.
Basic and diluted earnings per share (kobo) stood at 125 kobos from 185 kobos in 2021
Dividend payout: At the company’s Annual General Meetings (AGM), shareholders endorsed a dividend of N15.6 billion dividend, representing N7.14 kobo per share of 50 kobos each.
Addressing shareholders at the AGM, Guinness Nigeria’s Chairman of the Board of Directors Dr Omobola Johnson, said the commitment to the company’s expansion strategy and improved operational efficiency has helped to sustain the growth.
- “We are pleased that our strategy is assisting us in achieving our goals. We have made strategic investments, and we will keep doing so to make sure this leads to more growth. Despite the difficult business environment, Guinness Nigeria has consistently worked to remain competitive. We will work at maintaining the remarkable trajectory that we have now because we value the confidence and trust that our distinguished shareholders have placed in us.
- “Guinness Nigeria remains the only Total Beverage Alcohol Company in Nigeria. We are glad that we are fulfilling our promises of sustainably conducting our business to satisfy our customers and drive better returns on investment for our shareholders. The Board will continue to support the Management’s efforts to sustain global best practices to keep our flag flying.”