Guinness Nigeria Plc
F14 Half-Year Results
17 February 2014
Introduction & Performance Review Seni Adetu,
Managing Director/Chief Executive Officer
Financial Performance Lisa Nichols,
Finance and Strategy Director
Strategic Priorities and Outlook Seni Adetu,
Managing Director/Chief Executive Officer
Questions & Answers Sesan Sobowale,
Company Secretary/Corporate Relations Director
H1 F14 Introduction and
Nigeria continues to be an attractive
The MINT (Mexico, Indonesia, Nigeria andTurkey ) economies all have very favorable
demographics for at least the next 20 years, and their economic prospects are interesting.
- Jim O’Neil
(millions) LPA+ Adults
in 10 years
Nigeria 80.0 103.6
2015 elections: government spending expected to increase in the lead up to the
elections and will likely result in improved discretionary income
… but challenges remain
Power supply: Continues to be an issue but recent developments
in the sector give cause for optimism as we expect to start to see a
difference before the end of 2015.
Discretionary income: Removal of fuel subsidy in 2012 continues
to impact consumer spending.
Security: Acts of violence and terrorism still occur in some parts
of the country and this restricts economic activity in those parts.
Government continues to work to bring the situation under
Oil revenue: The Nigerian economy is very dependent on oil
revenues accounting for over 90% of export and 80% of revenues.
Key Drivers of Performance
The half has witnessed:
Continued contraction of the beer market even though a slight
improvement was reported in December 2013.
Increasing growth of the value segment.
Premium brands experienced softness in volume following price increases.
This has led to:
Weaker topline performance; and
Impacted margins negatively.
We have enhanced our ability to scale-up in the production and
distribution of our value offerings especially Dubic Lager
Mix Reduction in
Interest Tax F14 H1 PAT
Lower profit and
Drivers of PAT F14 H1 vs. LY (=N= billion)
Drivers of Profit
Our strategic priorities
Strengthen and accelerate our premium core
Innovate at scale to meet new consumer needs
Build and then constantly extend our advantage
in Route to Consumer
Drive out cost to invest in growth
Guarantee our plans with the right people and
Guinness Harp Malta Guinness
• Unveiling of the New
Look of Cool (Harp
New packaging) at
• Re-launch of the
(Colorful world of
• Guinness Football
• Continued EPL
• Associate Sponsor
of Nigeria’s Got
Talent reality show
• New “Rise with
the power of Naija”
Copa Lagos Beach
Alvaro Masters Choice
premium spirit with
Alvaro – an adult
malt based drink
Bottle launch to
premium spirit with
Orijin to celebrates
the vibrancy of
African culture. Made
with the flavour of
African Herbs and
fruits with a modern
Launched in August
Route to Consumer
our brands and
share in key
• Increase in
• Pilot further
where we are
• Over 200
• Substantial rise
in number of
share in the
• Dedicated Key
trade route to
of our sales
• Improving the
• Sales Academy
• New Credit
We are conducting a pricing review on key brands in line with market realities.
We plan to sustain A&P investments behind our brands.
We expect to begin to see some of the benefits of our RtC transformation work.
We expect that the re-launch of Guinness and Harp will drive increased uptake.
We will continue to focus on expanding our innovation footprints with existing brands and
Our focus on improving the capability of our sales force will continue
We expect all this to lead to some topline improvement in the second half of the financial
We are confident that our focus on our strategic priorities will return the business back to
growth and improved profitability.
This presentation is based on Guinness Nigeria Plc’s unaudited interim financial results for the half-year period
ended 31st December 2013. Guinness Nigeria Plc (“GN” or the “Company”) has obtained some information in
this presentation from sources it believes to be reliable. Although GN has taken all reasonable care to ensure
that the information herein is accurate and correct, the Company makes no representation or warranty,
express or implied, as to the accuracy, correctness or completeness of such information.
Furthermore, GN makes no representation or warranty, express or implied, that its future operating, financial
or other results will be consistent with results implied, directly or indirectly, by information contained herein or
with GN’s past operating, financial or other results. Any information herein is as of the date of this presentation
and may change without notice. Guinness Nigeria undertakes no obligation to update the information in this
presentation. In addition, some of the information in this presentation may be condensed or incomplete, and
this presentation may not contain all material information in respect of GN.
This presentation also contains “forward-looking statements” that relate to, among other things, GN’s plans,
objectives, goals, strategies, future operations and performance. Such forward-looking statements may be
characterised by words such as “estimates,” “aims,” “expects,” “projects,” “believes,” “intends,” “plans,” “may,”
“will” and “should” and similar expressions but are not the exclusive means of identifying such statements.
Such forward-looking statements involve known and unknown risks, uncertainties and other important factors
that could cause GN’s operating, financial or other results to be materially different from the operating,
financial or other results expressed or implied by such statements. Although GN believes the basis for such
forward-looking statements to be fair and reasonable, the Company makes no representation or warranty,
express or implied, as to the fairness or reasonableness of such forward-looking statements. Furthermore, GN
makes no representation or warranty, express or implied, that the operating, financial or other results
anticipated by such forward looking statements will be achieved. Such forward-looking statements represent, in
each case, only one of many possible scenarios and should not be viewed as the most likely or standard
scenario. GN undertakes no obligation to update the forward-looking statements in this presentation.