Guinness dividend slumps to N5bn

Guinness Nigeria Plc, Nigeria’s leading beverage manufacturer, has released its audited results for the year ended June 30, 2014, showing a sharp cut in its dividend recommendation.

The brewer recommended a N5bn dividend for the year ended June 30, 2014, compared to the N10.5bn it presented the previous financial year.

The N5bn dividend, which represents 320 kobo per 50 kobo ordinary share, shows a sharp drop from the 700kobo per 50kobo ordinary share it declared in the year ended June 30, 2013.

However, the dividends are subject to approval at the next Annual General Meeting (AGM).

Guinness also said its total revenue for the year in view is N109bn while its profit after tax is approximately N10bn.

Managing director/chief executive officer of Guinness Nigeria, Seni Adetu, blamed the decline in revenue and profit on increased financial cost, pricing disadvantage, growth in the value segment where the company is a relatively small player as well as competitor’s aggressive trade practices.

Chairman, Guinness Nigeria Plc, Babatunde Savage, said that despite the challenges faced, the company progressed in the key areas of cost containment, achieving improved cost efficiencies and the upgrade of its route-to-consumer, which is directly linked to volume growth recorded by brand Guinness in the second half of the financial year.

“The board of Guinness Nigeria is confident that we have the right people and capability to guarantee the delivery of our strategic priorities of driving out cost to invest in growth, turning the business around by strengthening and accelerating our premium core brands, innovating at scale to meet new consumer needs, and extension of our route-to-consumer advantage,” he added.

Adetu confirmed that the various innovations launched by the company in recent times, especially Orijin Bitters and Orijin Ready to Drink (RTD), have been quite successful.

“In the period under review, Guinness Nigeria launched several innovations, including Orijin Bitters, Orijin RTD and Alvaro. The company confirmed that sale of its innovation brands like Orijin Bitters, Snapp, Satzenbrau, Dubic and Orijin RTD were still growing, heralding a big boost for Guinness Nigeria’s future performance,” he said.

“We expect to further dial up our play in the value segment with Satzenbrau and Dubic Lager.”