The board of directors and management of Guinness Nigeria Plc, has assured shareholders of the company that despite major headwinds faced by the company, the business remained resilient.
The company disclosed this on Tuesday in Lagos, at its 73rd Annual General Meeting (AGM). The yearly meeting which was well attended gave shareholders an opportunity to ask critical questions on the company operations and how it will impact on their investment in the company.
Responding to some of the concerns of shareholders, chairman of the board, Dr Omobola Johnson, explained that the tenacity of the business to come out strong in the 2023 financial year is a testament of the commitment of the board and management to continuously deliver value to all its stakeholders.
“While we acknowledge the impact of the government monetary policy decision to unify the various exchange rate windows that led to the significant forex losses that hit our financials so close to the end of 2023 financial year and affected our ability to propose payment of dividends, the board and management remain confident that the business remains strong and is still on course to a bright future”
On his part the managing director / chief executive officer, John Musunga, noted that despite the macro economic challenges, the board maintains confidence in the company’s well considered strategy, anticipating continued strong value creation for all stakeholders in the medium to long term.
He pointed out that as Guinness Nigeria marks another significant milestone with the commemoration of its 73rd anniversary and progresses into the future.. the business continues to proactively realign and reposition itself with the required agility to effectively adjust to the changing landscape of the Fast Moving Consumers Good (FMCG) sector in Nigeria.
In his words “we will continue to place a premium on the consistent delivery of quality products to our consumers in relentless pursuit of our aim to be the best performing, most respected consumer products company in Nigeria”
Stressing that “as part of our strategy to improve on the consumer experience with our brands, we have continued to implement our brands revitalization program through delivery of innovative products. In 2023, Smirnoff Ice, the world’s number one ready to serve brand, launched a new variant Smirnoff Ice Pineapple Punch in both glass and cans , and also unveiled Smirnoff Ice Double Black with Guarana in returnable glass bottle packaging. The launch of the new products will support our overall strategic business objectives on margin expansion and move us closer to delivering the company’s objectives”
The finance & strategy director Emmanuel Difom, said in 2023 full year the company recorded a growth of 11% in revenue from N206.8 billion in 2022 to N229.4 billion. Similarly, the business delivered N234 billion operating profits for the year ended June 30, 2023.
Following the devaluation of naira and scarcity of forex in the official foreign exchange window, the company had to revalue its foreign currency denominated obligations, resulting in N49.1 billion unrealised forex loss in the company income statement for the year ending June 30th, 2023.
Guinness Nigeria Plc, a public limited liability company quoted on the Nigerian Exchange Limited (NGX) was incorporated 29 April 1950 as a trading company importing Guinness Stout from Dublin.
The Company has since transformed into a manufacturing operation and its principal activities continue to be brewing, packaging, marketing and selling of Guinness Foreign Extra Stout, Guinness Extra Smooth, Malta Guinness, Malta Guinness Herbs Lite, Harp Lager, Smirnoff Ice, Satzenbrau Lager, Dubic Malt, Snapp, Master’s Choice, Orijin Spirit Mixed Drink, Orijin Bitters, Smirnoff Ice Double Black with Guarana, Guinness Africa Special, Orijin Zero, Tappers and Royal Kingdom Lager.
