Guinness Nigeria’s Post

NAME OF COMPANY: Guinness Nigeria Plc NATURE OF BUSINESS: Produces mostly alcoholic drinks like guinness smooth and smirnof ice, among others. SECTOR: Manufacturing INDUSTRY: Consumer Goods AGE: 74 years RETURN TO THE COMPANY: * 23% TIME TO PAY OFF LIABILITIES (for non-financial companies): *5 years STRENGTH OF BACK-UP CAPITAL (for financial companies): *--- INTRINSIC VALUE OF THE COMPANY: *N107 a share *N214 Billion in market value RETURN TO INVESTORS: * 24% BENCHMARKS: *10-year Bond Yield: 20% *Inflation Rate: 34% NOTE: *All figures are approximated to whole numbers, except the age of the company. The analysis is based on the company's most recent full year performance. The maximum projection period is 5 years. Estimates are conservative (risk-averse or moderate expectations) INTRINSIC VALUE: The true worth of the company, based on its profits and a conservative growth rate. INTRINSIC VALUE = shareholders' equity, when the company makes a loss. NIL = zero (0), not available, or negative. #investing #stocks #equities #nigerianstockmarket #nigerianexchangegroup

I was really curious when I saw the news about Diageo selling off their stake in Guinness Nigeria to Tolaram Group. This curiosity prompted me to research and read up on this . I found out that Guinness Nigeria incurred a Net Loss of N61.7 billion Naira. The interesting thing to note here is that the company actually recorded more sales than the previous fiscal year. According to the cable news, their nine-month earnings figures show sales revenue of N220.3 billion, which is an increase of 27.7 percent year-on-year, up from 20.4 percent at half year.. Despite that they experienced a huge loss. This loss is because of the increase in cost of production caused by the unstable FX. What this translates to is that in the present Nigerian economy, it’s not enough to seek for increased sales. The volatility of the Foreign Exchange Market can change one’s fortune negatively overnight. If multinationals who have been in business for decades and have the best financial minds on their teams are finding it hard to weather this storm, what does this mean for small businesses? Now more than ever small businesses have to seek for ways to reduce the cost of production and adjust their business model to more sustainable ones. As much as many businesses are experiencing losses, so many businesses are experiencing exceptional profits. Choose the side of positivism and ask yourself what are they doing right ? Kindly share if you found this interesting.

Recently, I had the opportunity to join Rotus Odiri on SmoothFM 98.1's Business Hub to discuss Tolaram's acquisition of Guinness Nigeria from Diageo. During our conversation, we explored how macroeconomic events, policies implemented by the current administration and the Central Bank of Nigeria, along with other domestic challenges, have impacted the business environment in the country. Please see the link to the full engagement below. https://lnkd.in/dAUWxEbE Also, Below is a link to my engagement on the topic "Nigeria to Begin N75,000 Distribution to the Poor" https://lnkd.in/d_HC64bi

ANOTHER ONE LEAVES Tolaram Group, producers of Indomie Instant Noodles, will acquire Diageo's 58.02 percent shareholding in Guinness Nigeria. Implication is that Diageo is divesting from the country while still maintaining their ownership of the Guinness brand and hence entitled to royalties (in foreign currencies). Guiness Nigeria Plc recently reported a loss after tax of N61.7 billion for the nine months ending March 31, 2024, a stark contrast to the N5.9 billion profit in the same period the previous year. Despite a 28% year-on-year revenue growth to N220.3 billion, significant foreign exchange losses, totaling N83 billion, and a pre-tax loss of N60.5 billion have severely impacted the company’s financial health. The financial strain has wiped out Guinness Nigeria’s retained earnings, pushing the company into a negative equity of N4.7 billion. The interest expenses on loans and borrowings surged by 490% year-on-year to N5.6 billion, compounding the fiscal challenges. It’s a sad reality of what has become of our economy under the stewardship of the present administration.

IS GUINNESS NIGERIA trully leaving Nigeria? Guinness is not leaving Nigeria. Diageo, the parent company of Guinness, is selling its 58.02% stake in Guinness Nigeria to Tolaram, but Diageo will retain ownership of the Guinness brand and license it to Guinness Nigeria for long-term production and distribution. Under the new partnership, Guinness Nigeria will continue to operate under the stewardship of Tolaram, with Diageo retaining ownership of the Guinness brand. This arrangement will enable the company to leverage Tolaram's manufacturing and distribution expertise while maintaining Diageo's brand-building and innovation capabilities. Guinness Nigeria will remain listed on the Nigerian Exchange Ltd, and Tolaram intends to launch a mandatory takeover offer in compliance with local law requirements. It's high time some online miscreants and disgruntled elements stop spreading half-baked and unsubstantiated news, all with the aim of pulling down a government.

Is There Light At The End Of The Tunnel As Guinness Sells Majority Stake In Nigeria To Singapore’s Tolaram? 'In conclusion, Diageo’s departure from Nigeria, despite retaining the Guinness brand license, signifies a shift in the dynamics of foreign investment in the country. The move will undoubtedly impact Nigeria’s economic landscape, whether for good or for bad, only time will tell, although one or two precedents suggest the West African giant will come out ahead. In any case it presents an opportunity for Tolaram to leverage its expertise and strengthen its foothold in the region and perhaps even help to shape the Nigerian beverage market and foreign investor sentiment in the long run.' https://lnkd.in/ddHur3jX

IS GUINNESS NIGERIA trully leaving Nigeria? Guinness is not leaving Nigeria. Diageo, the parent company of Guinness, is selling its 58.02% stake in Guinness Nigeria to Tolaram, but Diageo will retain ownership of the Guinness brand and license it to Guinness Nigeria for long-term production and distribution. Under the new partnership, Guinness Nigeria will continue to operate under the stewardship of Tolaram, with Diageo retaining ownership of the Guinness brand. This arrangement will enable the company to leverage Tolaram's manufacturing and distribution expertise while maintaining Diageo's brand-building and innovation capabilities. Guinness Nigeria will remain listed on the Nigerian Exchange Ltd, and Tolaram intends to launch a mandatory takeover offer in compliance with local law requirements. It's high time some online miscreants and disgruntled elements stop spreading half-baked and unsubstantiated news, all with the aim of pulling down a government.

Nigerian Breweries Plc has reported a robust 74.9% revenue growth for Q3 2024, with revenue hitting N703 billion, driven by strategic pricing, innovative approaches, and a dedicated team. Despite currency devaluation and high costs, Managing Director (MD)\Chief Executive Officer (CEO) of Nigerian Breweries, Mr. Hans Essaadi, credits the growth to the company’s resilience and ongoing support from stakeholders. Company Secretary, Mr. Uaboi Agbebaku, reiterated Nigerian Breweries’ commitment to "Winning with Nigeria" through sustainable development and impactful partnerships. Read the full report to see how Nigerian Breweries is setting a benchmark for performance amid challenges. https://lnkd.in/gGqFwFkE #NigerianBreweries #RevenueGrowth #FinancialResults #BusinessResilience #Innovation

A New Era in Saudi FMCG ? HSA Group Launches Advanced International Trading Company (AITC)! The HSA Group has launched Advanced International Trading Company (AITC), a new entity focusing on the fast-moving consumer goods (FMCG) sector in Saudi Arabia. This bold step aligns with Saudi Vision 2030, addressing growing consumer demand fueled by population growth, urbanization, and increasing income levels. AITC aims to transform the Saudi FMCG market by introducing both local and global brands through strategic partnerships with companies like ARMA Group (Egypt), Mama Sauce Company For Food Industries شركة صلصات ماما للصناعات الغذائية (Saudi Arabia), Santen (Poland), and Anadolu Grubu Soft Drink Group (Turkey). AITC operates under the HSA Group’s legacy, with leadership from Chairman Jamal A. Hayel Saeed and CEO Adnan Dawood, who emphasize innovation, local talent development, and multi-channel strategies. Key partners include Arma Group, Mama Sauce, Sante, and Anadolu Grubu, showcasing AITC's ambition to diversify its portfolio and expand product accessibility. Stay updated on groundbreaking news from the startup world. Follow me for more updates! #SaudiVision2030 #FMCG #AITCLaunch #HSAGroup #SaudiArabiaBusiness #StartupNews #Innovation #EconomicGrowth #LocalTalentDevelopment #GlobalPartnerships #BusinessExpansion #HSAExpansion

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