Guinness Nigeria starts its 2021 financial year with N841million loss
Guinness Nigeria Plc has started its 2021 financial year with a loss of N841 million for the opening quarter. In 2020, the loss was N370 million, which later fell into a discouraging financial year.
Recall that Guinness Nigeria’s 2020 financial year position saw loss in the aggregate 12 months period peak at N12.6billion. In other words, the company has moved from N5.5billion profit margin in 2019 to a loss of N12.6billion in 2020.
Commenting on 2020 results, Mr. Baker Magunda, Managing Director/CEO of Guinness Nigeria Plc, said: “The last quarter performance of fiscal 2020 was significantly impacted by restrictions due to COVID-19, exacerbating the already challenging economic environment. Closures of on-trade premises (bars, lounges, clubs, and dine-in restaurants), which represent the major part of the consumption occasion for our products and bans on celebratory occasions, impacted sales.
He noted that demand was also 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.
Mr. Magunda continued: “Distribution was impacted by the ban of inter-state, and in some cases intra-state travel. Although, Management worked diligently with regulatory authorities to minimize the impact, this hampered our distributors’ ability to restock and have our brands available for purchase.”
Also commenting on the result, the Chairman, Mr. Babatunde Abayomi Savage, said: “We believe we have experienced our full share of the COVID-19 impact and are now geared to go back to profitability in the new normal.”
RECOMMENDED ARTICLES
Comment
No comments found.