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Guinness Nigeria has notified the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange, and the investing public on material circumstances with impact on full year financial results for financial year 2020.
It said that the adverse impact of the sharp contraction in economic activities and the knock-on effect of the Covid-19 lockdown took a toll on the on-trade segment of the business across all our markets. Production and revenues have thus been negatively affected.
Following the notification of the material circumstances with impact on its FY2020 result, shareholders began to take back seat in buying the stock which led to the share price reaching its 52-week low of N14 as against a 52-week high of N47.80kobo.
This year, the stock which has decreased by -53.4percent underperforms the NSE All Share Index (ASI) which dipped by -8.37 percent as at July 1.
Guinness Nigeria said it carried out a comprehensive review of its asset base and made a strategic decision to impair a certain category of assets, which were generating suboptimal returns. This is in line with the company’s long-term strategy of delivering value to shareholders.
The brewer’s audited financial results for the year 2020 as approved by the Board will be published in accordance with extant rules and guidelines after the completion of the year end audit in the month of August 2020, according to the company.
“Due to a combination of the impact of Covid-19 and the asset impairment, we expect the profitability of the Company for the Financial Year to June 30, 2020 to be impacted. The Company’s balance sheet however remains strong, and this gives the Board the confidence that the Company has the right resources to continue to deliver the strategy”, it stated.
