ShowYourCertificate:
Ok, let me give an illustration. If you have a bus that fetches you 1000 naira every day. 1000 naira is your profit for the day since all the net expenses (not gross) for the day has been deducted. It is out of this profit that you'll pay school fees, pay house rent and buy food stuffs (gross expenses). Now, imagine that the returns from the bus reduces to 340 naira! Of you course you still made a net profit (P) of 340 naira but your DP/Dt is negative. You've actually made a loss in a strict accounting terms cost your net profit curve will be on a decline.

Don't stretch this. Loss is when cost is greater than income. Simple

Guinness did not make a loss.

Ibime:


There is no loss.

Drop in other income is likely due to the company selling a piece of property/plant/equipment last year but not this.

If your company owns a piece of land valued in your balance sheet at N100k and you sell it for N1m, you have to declare N900k in Other income. In next years accounts, if you don't sell any land, your Other Income would have dropped by N900k on a comparative basis.

This is what has most certainly happened in Guiness case and has nothing to do with politics.

Where you can possibly bring politics into it is to state that Cost of Sales has increased by 18% and this may be caused by increase in fuel costs or inflation or maybe Guiness buy their raw materials in dollars and Naira has devalued since last year so Cost of Sales has increased.

That's your speculation. The drop in other income could also be that the coy sold a piece of land valued at 100k for 1 million last year thereby other income becomes 900k for last year. But in this year, the coy could only sell another parcel of land valued at 100k for the same price at 100k. This will ultimately lead to a reduction in profit from other income by 900k. What was responsible for the devaluation? External factors tied to government policies? A possibility.

I'm glad you agree with me concerning the role of the dullard's government in the 18% increase in cost of sales

Activa:


Don't stretch this. Loss is when cost is greater than income. Simple

Guinness did not make a loss.

You are obviously not an accountant nor an economist. I'm sure you did opportunity cost and real cost in school. Revisit that topic.

Who are the people drinking all their Guinness drinks in the bars and beer palours?

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do this decline put guinness in guinness book of records?

My candid advice to Guinness. I was once their employee (Full Staff). they can not be doing the same thing the same way and expect different results. Even their staff are not motivated. Any one in their production floor can testify to this. Guinness has leadership problem right from the time of the White guy before Seun Adeti. Until they have motivated staff, and stringent policies reform, things will continue to be this way. Nigerian Breweries has taken over the market right under the full glare of guinness management. No Training scol no staff development plans. P4G crummbled. Nothing. 12hr shift at shop floor ( 7am to 7 pm, 7pm to 7 am everyday) majority of their operators are BSc and MSc holders. only to grab already experienced guys from other companies who are only interested in making money out of them. Too much politics. Honestly speaking, alot actually culminated to this and i will advice them that the problem is more internal than external. Those good for nothing skinny uk-schooled girls in their HQ are only there making fucking policies without proper understanding of the underlying problems.

Their so called Engineers are nothing but Push-botton Engineers. causing unnecessary overheads. Ordinary machine breakdown they cannot fix. just pocketing and be directing at the shop floor. i dont blame them, they were recruited using GMAT and GSE questions. I wonder the number of machine design and machines repairs GMAT has been able to solve for them. mtshewwwwwwwwwwwwww.

the few months i spent there i was just watching and felt so sorry for them. i solved a huge problem at he shop floor. my shitf manager took the glory. i laughed. i never contended it with him.

i told them when i was granted exit interview , that things are not going well on the shop floor.the competency level of their engineer was very very low. the woman was like..* are you serious*.. i was amazed the volume of resignation letter i saw at the HQ the day i resigned. They are very insensitive and its quite unfortunate.

Whats is still sustaining them is the brand " Guinness" and some few intelligent guys among them.

Naturallyme:
My candid advice to Guinness. I was once their employee (Full Staff). they can not be doing the same thing the same way and expect different results. Even their staff are not motivated. Any one in their production floor can testify to this. Guinness has leadership problem right from the time of the White guy before Seun Adeti. Until they have motivated staff, and stringent policies reform, things will continue to be this way. Nigerian Breweries has taken over the market right under the full glare of guinness management. No Training scol no staff development plans. P4G crummbled. Nothing. 12hr shift at shop floor ( 7am to 7 pm, 7pm to 7 am everyday) majority of their operators are BSc and MSc holders. only to grab already experienced guys from other companies who are only interested in making money out of them. Too much politics. Honestly speaking, alot actually culminated to this and i will advice them that the problem is more internal than external. Those good for nothing skinny uk-schooled girls in their HQ are only there making fucking policies without proper understanding of the underlying problems.

Their so called Engineers are nothing but Push-botton Engineers. causing unnecessary overheads. Ordinary machine breakdown they cannot fix. just pocketing and be directing at the shop floor. i dont blame them, they were recruited using GMAT and GSE questions. I wonder the number of machine design and machines repairs GMAT has been able to solve for them. mtshewwwwwwwwwwwwww.

the few months i spent there i was just watching and felt so sorry for them. i solved a huge problem at he shop floor. my shitf manager took the glory. i laughed. i never contended it with him.

i told them when i was granted exit interview , that things are not going well on the shop floor.the competency level of their engineer was very very low. the woman was like..* are you serious*.. i was amazed the volume of resignation letter i saw at the HQ the day i resigned. They are very insensitive and its quite unfortunate.

Whats is still sustaining them is the brand " Guinness" and some few intelligent guys among them.

u really talked like an insider. Pls do they grant u interview too while trying to leave d co; got attracted to 'exit interview'

ShowYourCertificate:
That's your speculation. The drop in other income could also be that the coy sold a piece of land valued at 100k for 1 million last year thereby other income becomes 900k for last year. But in this year, the coy could only sell another parcel of land valued at 100k for the same price at 100k. This will ultimately lead to a reduction in profit from other income by 900k. What was responsible for the devaluation? External factors tied to government policies? A possibility.

This is preposterous. The likelihood of a company disposing assets continually each quarter is low. Any company continually disposing assets is in financial trouble and is trying to liquify it's assets to meet it's day-to-day obligations.

ShowYourCertificate:
I'm glad you agree with me concerning the role of the dullard's government in the 18% increase in cost of sales

No I don't agree with you because the accounts we are discussing are for Q1 2015 when GEJ was in power. Learn to read before jumping feet first and politicising simple issues that a bit of education will help you understand.

Besides it doesn't matter whether it's GEJ or Buhari. The fall in oil prices and subsequent knock-on effect on the value of the Naira is an external (global) factor which does not care whether GEJ or Buhari is in power. Oil price fall and Naira fall started some months before GEJ left office.

Mscheeew. Nigeria is a place where any half-baked dude would start analysing everything through the narrow prism of politics. That you follow politics does not mean you are educated or know what you're talking about and gives you no right to hold a view on technical issues you know nothing about.

carboblanko:
Mr Man please read the post again slowly.Q1 means first quarter of the year in Jan-April. Who was the President then? Thank me later.

keep deceiving yourself. You should be the one to read it again. The report said, FOR THREE MONTHS ENDING SEPTEMBER 30TH. Count three months backward from september 30th and you will see that the title with Q1 is wrong. It should be Q3. This deception has to stop, what is left is the last quarter which is Q4.

Blaming it on the economy is not realistic, the truth of the matter is since the introduction of Orijin beer, Guinness has been finding hard to gain back their ground. All they need to do is to think out of the box

AnanseK:


You are in haste. This is Q1 ( quarter one ) report , January 2015 - April 2015 when the clueless government of GEJ was supposed to be watching the economy but instead were busy emptying the treasury .

I know you won't read the report but will only concentrate on the topic and shout clueless one while our economy is being strangled. The report said FOR THREE MONTHS ENDING SEPTEMBER 30TH. So the Op made a mistake in the topic. It should be Q3. So you should put the blame squarely on Buhari.

Activa:


You called someone a dullard yet no post can be duller than yours.

Beer is suffering loss of market share mainly because many people now drink wine and champagne.

Nigeria is one of the places where the growth of champagne consumption is highest in the world.

Besides, do you know the reason for the increase in costs? Do you know if some of their debts went bad?

You're on point

Ibime:


This is preposterous. The likelihood of a company disposing assets continually each quarter is low. Any company continually disposing assets is in financial trouble and is trying to liquify it's assets to meet it's day-to-day obligations.

Company's can dispose of assets and acquire new ones. There's nothing wrong with that. Besides, do you know if the said assets is accruing unwanted costs (like maintenance, etc). It is also possible that the company still has many other assets

No I don't agree with you because the accounts we are discussing are for Q1 2015 when GEJ was in power. Learn to read before jumping feet first and politicising simple issues that a bit of education will help you understand.

Guinness year begins in July. Q1 is July, August and September. Learn to read before jumping feet to cover for Buhari's dullardness.

Besides it doesn't matter whether it's GEJ or Buhari. The fall in oil prices and subsequent knock-on effect on the value of the Naira is an external (global) factor which does not care whether GEJ or Buhari is in power. Oil price fall and Naira fall started some months before GEJ left office.

Don't expose your biasness here. A wise government will always find a solution to the fall in oil price. Buhari must have known of this oil price decline before contesting. So he should have a solution!

Mscheeew. Nigeria is a place where any half-baked dude would start analysing everything through the narrow prism of politics. That you follow politics does not mean you are educated or know what you're talking about and gives you no right to hold a view on technical issues you know nothing about.

What makes you think I'm half-baked? And what makes you full-baked? Don't be so full of yourself. You don't know my predegree, neither do I know yours. So let's learn to respect and be tolerant of each other's views.

[size=13pt]Osinbajo will soon tell us that their government policies are not meant for brewers. Like he said nations don't need portfolio investors.

Government of the 'puritan saints' - Imam and Reverend.[/size]

After dey Don tell everyone their Orijins and that they are Made of Black, why nah... *sips star radler*

lol. Guinness is not orijinal

Naturallyme:
My candid advice to Guinness. I was once their employee (Full Staff). they can not be doing the same thing the same way and expect different results. Even their staff are not motivated. Any one in their production floor can testify to this. Guinness has leadership problem right from the time of the White guy before Seun Adeti. Until they have motivated staff, and stringent policies reform, things will continue to be this way. Nigerian Breweries has taken over the market right under the full glare of guinness management. No Training scol no staff development plans. P4G crummbled. Nothing. 12hr shift at shop floor ( 7am to 7 pm, 7pm to 7 am everyday) majority of their operators are BSc and MSc holders. only to grab already experienced guys from other companies who are only interested in making money out of them. Too much politics. Honestly speaking, alot actually culminated to this and i will advice them that the problem is more internal than external. Those good for nothing skinny uk-schooled girls in their HQ are only there making fucking policies without proper understanding of the underlying problems.

Their so called Engineers are nothing but Push-botton Engineers. causing unnecessary overheads. Ordinary machine breakdown they cannot fix. just pocketing and be directing at the shop floor. i dont blame them, they were recruited using GMAT and GSE questions. I wonder the number of machine design and machines repairs GMAT has been able to solve for them. mtshewwwwwwwwwwwwww.

the few months i spent there i was just watching and felt so sorry for them. i solved a huge problem at he shop floor. my shitf manager took the glory. i laughed. i never contended it with him.

i told them when i was granted exit interview , that things are not going well on the shop floor.the competency level of their engineer was very very low. the woman was like..* are you serious*.. i was amazed the volume of resignation letter i saw at the HQ the day i resigned. They are very insensitive and its quite unfortunate.

Whats is still sustaining them is the brand " Guinness"
and some few intelligent guys among them.

You really know Guinnes as a company the negative politics in that ikeja HQ is too much. Indeed our problem is not NBPLC because if it is was we would not be existing now that company (nbplc ) is ready to do all it takes to bring us down but we are still selling, We have great guys in guinness(sales guys they are miracle workers considering the stiff competition in the nigerian market ) and our staff are sorted after in other multi nationals our problem is INTERNAL.

ShowYourCertificate:
Yes, that's the question. The Nigerian population is on the rise and this expectedly led to the increase in the Gunness drinkers population. This should have led to an increase in profit but unfortunately it is not so. Cost of production is high due to our bad economy. What's the implication? Expect an increase in the price of Guinness and other alcoholic beverages. 76% loss, no company can tolerate such on the long run.

That is a weird statement. A rising population does not necessarily mean a rise in demand for a particular goods or services. If that were the case advertising agencies would be extinct because companies would not need their services anymore. Germany has a population of less than 80 million and they have probably the highest consumption of beer drinkers in the world. Nigeria is not even on the top 50. And our population is higher.

ShowYourCertificate:
Yes, that's the question. The Nigerian population is on the rise and this expectedly led to the increase in the Gunness drinkers population. This should have led to an increase in profit but unfortunately it is not so. Cost of production is high due to our bad economy. What's the implication? Expect an increase in the price of Guinness and other alcoholic beverages. 76% loss, no company can tolerate such on the long run.

Hello bro, that 76% loss is not good for our Economy in general, but if you read through again, there is no where they say's such loss was due to their cost of production as you pointed out. What the report say's was due to increase in their own COST of SALES i.e after the products has been produced. The question is still that; what are the factors that responsible for such sales cost?

Activa:


It's still all speculation.

None of the reasons you provided, as bright as they are, is conclusive.

Even if Fx rate moves against you, you might save costs in other areas. Eg finance cost.

Sure, you're quite right. Not until we see their financial statements. It's the part of wine and champagne that I thought was off at least in this case.

Ayoola171:
Hello bro, that 76% loss is not good for our Economy in general, but if you read through again, there is no where they say's such loss was due to their cost of production as you pointed out. What the report say's was due to increase in their own COST of SALES i.e after the products has been produced. The question is still that; what are the factors that responsible for such sales cost?

Do not misinform people.

Cost of Sales is the cost of creating the products that a company sells; therefore, the only costs included in the measure are those that are directly tied to the production of the products.

Any cost after production will be an indirect cost and form part of your operating expense not cost of goods sold.

Orijin don wake boys up na...

blank:


Do not misinform people.

Cost of Sales is the cost of creating the products that a company sells; therefore, the only costs included(excluded) in the measure are those that are directly tied to the production of the products.

Any cost after production will be an indirect cost and form part of your operating expense not cost of goods sold.

read very well, i dont mean earning from goods sold when i said COST OF SALES, I agreed Cost of sales is part of operating expenses as you said, @showyourcertificatetalked vividly on Cost of Production, but after the goods has been produced, what are those factors that made up their Cost of Sales that eroded their profit ? despite the fact that, their was 3% increase in their earning if you check very well, that's my own concern. Is it the cost of transporting their goods, advertisement, commision to their sales rep/distributors an so on. So i dont mean earning from goods sold.

@ jlinkd78, in most multinational companies, you will be interviewed at ur exit from the company. They want to know why you are leaving and where you are going to. They actually need your advise, so that they can learn. At this point , you vomit everything you had against the company or immediate line managers. Many actually resigned from that company because of bad managers most especially packaging department. (they once had a rude and arrogant packaging manager... J***to by name. i have scores to settle with that guy. he humiliated me)

ShowYourCertificate:
Yes, that's the question. The Nigerian population is on the rise and this expectedly led to the increase in the Gunness drinkers population. This should have led to an increase in profit but unfortunately it is not so. Cost of production is high due to our bad economy. What's the implication? Expect an increase in the price of Guinness and other alcoholic beverages. 76% loss, no company can tolerate such on the long run.

Price increase, when Aregbese is reducing salaries Many things will happen in Nigeria soon.

Obrigardo:
The christians and moslems will be happy about this. high time beer and cigarette companies start announcing loss so they go out of business. Hypocrites!

I am delighted.

On the same note. . . I read, on Nairaland, of a politician named Heineken. What the!

Yes. Most multinationals grant an exit interview when you're leaving. At times to see if they can persuade you to stay.

jlinkd78:
u really talked like an insider. Pls do they grant u interview too while trying to leave d co; got attracted to 'exit interview'

asuustrike2009:

why can't NB do the same for coco cola. I don't like the way Golds Spot died

bro...NB, dnt buy an already dead products....al the do iz to go 4 the current onez...jxt like "33" beer

isalegan2:


I am delighted.

On the same note. . . I read, on Nairaland, of a politician named Heineken. What the!

the last thing we need is more people losing jobs right now

Ayoola171:
read very well, i dont mean Cost of goods sold when i said COST OF SALES, I agreed Cost of sales is part of operating expenses as you said, @showyourcertificatetalked vividly on Cost of Production, but after the goods has been produced, what are those factors that made up their Cost of Sales that eroded their profit ? despite the fact that, their was 3% increase in their earning if you check very well, that's my own concern. Is it the cost of transporting their goods, advertisement, commision to their sales rep/distributors an so on. So i dont mean the cost of goods sold.

I actually thought I was conversing with someone with some knowledge of the matter. Cost of goods sold and cost of sales are the same thing. Even a simple Google search will tell you that.

blank:


I actually thought I was conversing with someone with some knowledge of the matter. Cost of goods sold and cost of sales are the same thing. Even a simple Google search will tell you that.

, cost of goods sold you mentioned; i missed it for "Earning from goods sold" that's why i said is not what i'm talking about untill i go back to read through again. But the report says Cost of Sales, which means the cost incured in the process of selling after the goods has been produced, you also spread it when you said, Cost that are directly tied to the production (Cost of production) which analysis of Showurcertificate was directed to. Now it's obvious the report say's Cost of sales; which form part of operating expenses, and not the Cost of production that was tied directly to the Production; that's my arguement.