Nigeria: Guinness Nigeria declares final dividend for financial year ended June 30

The company’s secretary, Rotimi Odusola in a statement on Nigerian Exchange Limited (NGX) explained that, “On 20th October 2021, dividends will be paid electronically to shareholders whose names appear on the Register of Members as at 28th September 2021, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts.”

It is pertinent to note that the final dividend of 46 kobo per share, which is subject to appropriate withholding tax and approval will be paid on all of the company’s 2,190,382,819 outstanding shares. This puts the total amount to be disbursed as final dividends N1, 007,576,096.74.

Based on its impressive performance for the period, a dividend of 46 kobo per share, totaling over N1 billion was declared for the period. Guinness Nigeria closed trading on Monday, September 27 at N30 per share.

The multinational company had announced its audited results for the period ended June 30, 2021 revealing a 110per cent increase in profit after tax to N1.25billion from loss of N12.6billion reported in full year ended June 30, 2020.

The audited results indicated that revenue increased 54per cent to N160billion in 2021 from N104.4billion reported in 2020

Managing Director/CEO, Guinness Nigeria Plc, Mr. Baker Magunda, in a statement said: “The performance of fiscal 2021 showed that the business delivered growth despite the challenging external environment characterized by COVID-19 restrictions and high inflation.”

“Revenues grew double digit across all key categories, particularly our strategic focus brands Guinness, Malta Guinness as well as our local and imported spirits.”

“This was supported by improved product mix and headline price increases in key brands. Gross margins declined by three per cent driven by inflationary pressure, a shift towards more expensive can products given at-home consumption trends, and forex devaluation impacting some materials,” Magunda explained.

The company, however, revealed that its net finance costs remained on similar level as last year despite the lower debt position, due to the devaluation of Naira impacting the foreign currency denominated trading balances.

“Tax was impacted by a one-off historic charge. Profit before tax increased to N5,8billion, a 134per cent growth versus same period last year; and Distribution expenses increased by 22per cent versus last year behind volume growth due to efficiency improvements across distribution channels,” Managing Director/CEO, Guinness Nigeria Plc, Baker Magunda said.

“Going into the new fiscal year, we are conscious of the continued challenging operating environment with double-digit inflation and pressured consumer income spending. However, we will continue to focus on our strategy – optimising our route to consumer, innovating at scale to satisfy our consumers and improving cost control – as we continue to emerge stronger from the current crisis. We remain confident about the execution and resilience of our Total Beverage Alcohol strategy as a key driver of sustainable growth in the market,” he added.