Guinness Nigeria’s Profit Tumbles During Economic Downturn

Guinness Nigeria’s Profit Tumbles During
Economic Downturn
Guinness Nigeria Plc, the country’s second-
biggest brewer, said profit fell 83 percent in
the nine months through to the end of March
during a downturn in Africa’s largest
economy.
Earnings after tax were 864 million naira
($4.35 million) in the period, compared with
5.2 billion naira a year earlier, the local unit of
Diageo Plc said in a statement on the
Nigerian Stock Exchange’s website. Revenue
dropped 18 percent to 69.6 billion naira.
While the company didn’t comment on its
results, Nigeria has been hammered by oil
prices falling 60 percent since mid-2014 to
about $45 a barrel. The economy grew 2.8
percent last year, the slowest pace since
1999. The International Monetary Fund said
last month it will probably drop further to 2.3
percent this year.
Guinness Nigeria’s shares fell 1.8 percent to
98 naira by 1:04 p.m. in Lagos, the
commercial capital. The stock is down 42
percent since the start of 2015, compared
with 28 percent for the Nigerian All Share
Index. Nigerian Breweries Plc, the biggest
beer maker and controlled by Heineken NV,
has fallen 36 percent in that period.
(Bloomberg)