Nigeria: Guinness records drop in sales
Said to be a result of continuing softness in the beer market, Guinness Nigeria Plc has recorded a turnover of N53 billion ($330 million) for the half year period ending 31 December 2013. In a statement to the Nigerian Stock Exchange, parent company Diageo said net income fell to N5 billion ($30.7 million) in the six months through December, compared with N6.42 billion ($40.0 million) a year earlier. Indicators also show that the company’s first half profit dropped 22 %.
As reported by Fast Moving, Guinness Nigeria Chief Executive Officer, Seni Adetu spoke of the decreased turnover by saying: “While the beer market in Africa’s most populous country showed some recovery in the second quarter, government spending in order to secure votes ahead of elections next year hasn’t been as strong as expected, impacting sales”.
Adetu went on to say: “Continuing decline in discretionary income amongst other factors, has continued to affect the performance of the business in the year under review. Our performance for the period ended 31st December 2013 has been impacted by the contraction of the beer market for most of the half and the shift towards the value segment mainly due to affordability and discretionary income trends”.
The company said that it would continue to tightly manage its cost base to improve operating margins. It further stated that its focus on strategic priorities would help the company return to growth and improve profitability.