Guinness Nigeria Warns on Challenging Economy, Volatile Naira

LAGOS (Capital Markets in Africa) – Guinness Nigeria Plc sees a tough economic environment in Africa’s most populous country and a volatile naira ahead of looming presidential elections in February.

The unit of U.K. drinks giant Diageo Plc is monitoring the Nigerian currency to make sure there’s no significant hit to costs, Stanley Njoroge, head of finance and strategy at Guinness Nigeria, said on an investor call in Lagos on Thursday.

The brewer sees disposable income under pressure for the forseeable future, and plans to focus on better-performing premium brands such as Guinness and spirits, he said. The company will reduce costs through productivity and introduce new brands to stay ahead of a competitive market, which also includes the locally listed unit of Heineken NV.

First-half revenue declined 4 percent to 67.8 billion naira ($187 million), while net income rose to 2.6 billion naira, Guinness Nigeria reported on Wednesday.

Source: Bloomberg Business News