Guinness Nigeria Plc has assured its shareholders of a determined return to profitability after COVID-19-induced disruptions caused an adverse decline in revenue at the financial year-end.
The assurance was given at the 70th Annual General Meeting of the company held on Thursday.
The company’s audited results for the period ended June 30, 2020 had shown a 21 per cent reduction in revenue from the significant impact of COVID-19 lockdowns and other economic challenges.
During the AGM, the Chairman, Board of Directors, Babatunde Savage, said that the year 2020 was a very challenging year not only for the company but also for the manufacturing sector at large.
“But as a forward-looking company, we were still able to minimise our risk exposures and maintain a sustainable performance on all our alcoholic and non-alcoholic beverages portfolio”, Savage noted.
“Guinness Nigeria has always remained resolute with our comprehensive and robust strategy by making rightful investments of shareholders’ funds but our profit was impacted by a number of one-off accounting adjustments totaling N17.2bn, as well as volume declines due to the prevailing economic and COVID-19 impacted conditions.” Savage said.
He further disclosed that the task before the company in the new financial year was to drive its strategic objectives to bring the company back to profitability.
Savage affirmed that despite predictions that the coming year would be challenging globally due to the new normal, “we believe we have experienced our full share of the impact and are now geared to go back to profitability.”
The Managing Director, Guinness Nigeria Plc, Baker Magunda, expressed confidence in the company’s outlook for 2021, emphasising that some key strategic decisions of the company during the COVID-19 pandemic assured of a real and forward-driven return to stabilised operations.
He said, “The year under review witnessed the launch of Guinness Smooth; an exciting new variant of the Guinness products to expand profitability for the brand, while catering to a younger, vibrant demographic.
“As part of its social responsibility, Guinness Nigeria continues to contribute its quota to the socio-economic development of the country through various initiatives especially during the COVID19 pandemic.”
He added that the company delivered donations including non-alcoholic drinks, sanitizers and other humanitarian items that provided the necessary succor to the infected as well as vulnerable people.
Credit: punchng.com
