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Guinness Nigeria Plc at it Extraordinary General Meeting (EGM) scheduled for January 24, 2017 in Lagos will seek the approval of its shareholders to raise up to N40 billion through Rights Issue.
Guinness Nigeria Plc reported revenue increase of 6 percent in the first quarter (Q1) ended September 30, 2016 according to the financial statements at the Nigerian Stock Exchange. The Brewer had a Loss After Tax (LAT) position of N2.2billion in the period.
Peter Ndegwa, Managing Director/CEO, Guinness Nigeria had said the revenue growth was in spite of continuing challenges in the operating environment.
“The environment remains tough but we have seen contributions from our mainstream and international premium spirits brands as well as continuing growth of our value brands. These were the key drivers of the 6% revenue growth recorded for the quarter.”
The Rights Issue, which is subject to the approval of the relevant regulatory authorities, will allow Guinness Nigeria Plc to optimize its balance sheet while improving its financial and operational flexibility.
“Our cost of sales was impacted by the high inflationary environment and continuing currency devaluation leading to a reduction in operating profit. The higher finance cost in the quarter is due to the impact of unrealized foreign exchange losses as a result of the currency devaluation”, Ndegwa had said.
Established in 1950 and listed on the Nigerian Stock Exchange (NSE) in 1965, with a shareholder base of over 75,000 shareholders, the company brands include – Guinness Foreign Extra Stout, Guinness Extra Smooth, Malta Guinness, Harp Lager beer, Smirnoff Ice, Satzenbrau Pilsner, Dubic Lager Beer, Harp Lime and Malta Guinness Low Sugar. Guinness Nigeria is a subsidiary of Diageo Plc, a global leader in beverage alcohol with an outstanding collection of brands across spirits, beer and wine categories.
