The management of Guinness Nigeria Plc submitted its full year earnings report for the period ended June, 30, 2016 to the investing community last week, in keeping with its post-listing requirement.
The report, which came two weeks late, compared to the release date for the 2015 scorecard, among others, reflected the current economic situation with manufacturers coming under more intense pressure. Many of these companies attribute their poor numbers to the new flexible foreign exchange regime adopted by the Central Bank of Nigeria (CBN) in June 2016.
For the management of Guinness, blaming any of the aforementioned factors for its abysmal performance may not be tenable. The company’s profitability ratios had remained on the downward slop over the past five years before finally turning red this time, the first in 30 years.
Also, add this to the fact that sales revenue is at its lowest in nine years, an indication that something had gone wrong long before now. One question that the management may have to answer soon is whether its R&D has gone asleep.