October 22, 2020

Guinness Nigeria holds 70th AGM, assures shareholders of return to profitability

Guinness Nigeria holds 70th AGM, assures shareholders of return to profitability
From Left: Company Secretary Guinness Nigeria Plc, Mr. Rotimi Odusola; Chairman, Board of Directors, Mr. Babatunde Savage; Managing Director/CEO, Mr. Baker Magunda; Independent Non-Executive Director, Mr. Fabian Ajogwu (Behind)and Executive Director, Finance &Strategy Mr. Stanley Njoroge during the 70th Annual General Meeting of Guinness Nigeria Plc in Lagos, yesterday.

At the 70th Annual General Meeting (AGM) of the company held yesterday, Guinness Nigeria Plc has assured shareholders of a determined return to profitability after Covid19-induced disruptions caused an adverse decline in revenue at the financial year-end.

The company’s audited results for the period ended 30 June, 2020 had showed a 21% reduction in revenue from the significant impact of COVID-19 lockdowns and other induced economic challenges.

During the 70th AGM, Chairman, Board of Directors Babatunde Savage said that the year 2020 was a very challenging year not only for the company but for the manufacturing sector at large. “But as a forward-looking company, we were still able to minimize our risk exposures and maintain a sustainable performance on all our alcoholic and non-alcoholic beverages portfolio”, Savage noted.

“Guinness Nigeria has always remained resolute with our comprehensive and robust strategy by making rightful investments of shareholders’ funds but our profit was impacted by a number of one-off accounting adjustments totaling N17.2b, as well as volume declines due to the prevailing economic and COVID-19 impacted conditions.” Savage said.

He further disclosed that the task before the company in the new financial year is to drive its strategic objectives to bring the company back into profitability.

Savage affirmed that despite predictions that the coming year is forecast to be challenging globally due to the new normal, “we believe we have experienced our full share of the impact and are now geared to go back to profitability”, he assured.

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Managing Director, Guinness Nigeria Plc Baker Magunda expressed his confidence in the company’s outlook for 2021 emphasising that some key strategic decisions of the company during the covid19 pandemic assures of a real and forward-driven return to stabilized operations.

Despite the fact that demand was also gravely impacted by reduced consumer income, unemployment concerns due to the shutdown of a large number of businesses, and increases of VAT and excise throughout the year, Magunda assured that the company’s reaction to the challenges presented by the COVID-19 lockdown in Q4 was centered around reducing risk to the business by focusing on cash delivery, reducing distributor inventories, and fast-tracking the ongoing distribution transformation project for efficient sales operations.

“The year under review witnessed the launch of Guinness Smooth; an exciting new variant of the Guinness products to expand profitability for the brand, while catering to a younger, vibrant demographic.” He added.
As part of its social responsibility, Guinness Nigeria continues to contribute its quota to the socio-economic development of the country through various initiatives especially during the COVID19 pandemic.

The company delivered donations including non-alcoholic drinks, sanitizers and other humanitarian items that provided the necessary succor to the infected as well as vulnerable people and other persons across the operating communities of Guinness Nigeria Plc and the many states of Nigeria.

The company also commissioned more ‘Water of Life’ stations to enable more communities access to clean water needed for handwashing. Guinness Nigeria will continue, as it has done for the past 70 years, to ensure that we contribute to the economic development of Nigeria.