Nigeria’s second largest brewing company, Guinness Plc, has posted a financial loss for its year ending. This is the first in more than at 30 years
The company’s revenue nosedived by 14% due to the “effect of foreign-exchange policy and the devaluation of the naira.
According to the chief executive, Peter Ndegwa, operating profit plunged to N4.4bn from N15.7bn.
The naira has shed about 40% of its value against the dollar after the Central Bank removed the peg of 197-199 naira per dollar exchange rate.
That increased price pressures in the nation that imports goods from fuel to industrial inputs.
Gross domestic product contracted by 2.1 per cent in the three months through June from a year earlier, while inflation accelerated to 17.1 per cent in July, the highest rate since October 2005.
The economy is on track to shrink 1.8 per cent this year, according to the International Monetary Fund.
Guinness plans to invest N15.6m in a plant in Benin City next year.
The firm has also concluded plans to selling Guinness stout and Orijin in South Africa.
This, they hope, will attract foreign exchange, the CEO said.
The company’s shares closed at N100 on the Nigerian Stock Exchange in Lagos on Tuesday with the stock is down by 17% year-on-year.
When this figure is compared to that of Nigerian breweries, the company shed much value. Nigerian Breweries reported a 5.4% gain
The Nigerian Stock Exchange All Share Index has retreated by 1.5% this year alone.