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Declining purchasing power hinders manufacturing growth — Guinness

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By Peter Egwuatu

NSE: Guinness, PZ lowest performing stocks in October

The declining consumer purchasing power has been identified as one of the factors militating against the growth of the manufacturing sector in the country.

Managing Director/Chief Executive Officer, Guinness Nigeria Plc, Baker Magunda, who disclosed this during a facility tour of the company’s factory in Lagos, said, “We are making progress in our industry in this country, but one of the problems we are facing in recent time is the issue of low purchasing power of the people which in turn affects our turnover. When turnover is reduced it will definitely affect profitability.

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“If inflation is rising, the purchasing power of the people drops. So there is multiplier effect to the economy. The rate at which people consume will be affected and that has been the bane in our industry especially the brewery sector.

“However, for Guinness, we have been resilient to the economic situation and applying different strategies to ensure we create value even beyond brewery.”

He further disclosed that the increase in tax is also affecting the growth of the manufacturing sector as cost of production is affected.

“The energy  that we  use we produce and even transportation and clearance of goods from the ports are cost-consuming,” he noted.

During the factory tour, Magunda explained that giving the various challenges in the country, the company has diversified to various brands of drinks.

He said: “The diverse, quality brands that we produce have broken barriers and united people of various cultures and creeds in celebration and unity of purpose. They have forged new friendships and connections and kept true to our brand promise of celebrating life every day and everywhere.”

Vanguard

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