Guinness Nigeria has revealed that it was forced
to take a loan from parent Diageo, related to
dollar shortages in the country. The
announcement came even as the unit reported
its first full-year pre-tax loss in 30 years.
Guinness Nigeria said it took a $95m loan to help
cover dollar shortages, caused by the sharp drop
in prices of crude oil. The Nigerian economy is in a
recession, and in June, the country’s central bank
allowed the naira to float free – a move that has
seen it lose almost 40% of its value against the
dollar since.
The pressure on imported goods meant the unit’s
currency requirements were much bigger than
what it could source locally and from exports,
forcing it to turn to Diageo for the loan (priced at
3-month Libor plus 4.75%). The company also
said it will change strategy to avoid such issues
again in the future, noting: “Longer term we
intend to source raw materials locally”. It will also
begin locally producing spirits in 2017.
Guinness Nigeria also recorded a pre-tax loss of
2.35bn naira for the year ending June 2016,
compared to a profit of 7.8bn naira last year.
Revenue was down 14% to 102bn naira due to
lower consumer demand and currency
fluctuations, while operating profit was down to
4.4bn naira (from 15.7bn naira).
Guinness said it would lower its dividend to 0.50
naira, from 3.20 naira in the preceding year.

www.kamcity.com/namnews/international/nigeria-guinness-unit-reveals-diageo-loan-reports-first-fy-loss-in-30-years/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+namnews-kamcity+%28NamNews+-+Latest+Grocery+Retail+News%29

While we are busy marvelling and debating about if it was right for The Dullard to bring his whorish daughters to the UN, our country is going down the drain. We will definitely enter into Depression in 2017, with the way things are going.
Well, the good news is that when the country enters into the sh*t zone, the good for nothing Afonjas will jump on the plane and emigrate back to the ghettos of brixton and the bronx, where they belong. Then we can have peace.