Guinness Nigeria Raises N5bn via Commercial Paper

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Goddy Egene

Guinness Nigeria Plc is seeking to raise up to N5 billion Series 1 and Series 2 Commercial Paper (CP) under its N10 billion CP programme. The fund will be used to support its short term funding requirements.

The series 1 has a tenor of 180 days and a yield of 6.0 per cent, while the Series 2 has a tenor of 270 days and a tenor of 6.5 per cent. The offer opened on June 16 and closed on June 19, 2020.

Guinness Nigeria Plc is a member of the Diageo Group and one of the leading alcoholic and non-alcoholic beverage companies in Nigeria, with a dominant market share in the stout segment.

Guinness Nigeria Plc recently reported a revenue of N96.081 billion for the nine months ended March 31, 2020, showing a decline of 5.3 per cent compared with N101.402 billion recorded in the corresponding period of 2019.

Financing cost soared by 97 per cent to N3.582 billion compared to N1.817 billion in 2019. The company ended the period with a profit after tax (PAT) of N1.672 billion, down by 60 per cent from N4.252 billion in 2019.

According to the Managing Director/CEO, Guinness Nigeria Plc, Mr. Baker Magunda, revenue for the year to date continues to be impacted by excise duty increases which prior to February were not covered by price.

“ We remain confident however, that the underlying performance of our main strategic focus brands/categories – Guinness, Malta Guinness, RTDs and spirits – remains solid.”

He explained that he was pleased by the work they are doing on productivity that led to decline in the cost of sales despite the fact that Nigeria’s inflation rate at stood at 12 per cent.