Guinness strategises to boost profitability, shareholders’ value
…Invests N52b in in-house upgrade, others
Guinness Nigeria Plc, yesterday, unveiled strategic plans to boost profitability and enhance growth, amid harsh operating environment, stating that it has expended N52 billion in in-house upgrading, quality control measures as well as product automation.
The Managing Director of the company, Peter Edegwa, while addressing Journalists during the Pre-yearly general meeting of the company, in Lagos yesterday, explained that the company has taken various strategic approaches to ensure that it remains innovative and competitive, amid volatile operating environment.
According to Edegwa, the company is currently focusing on strengthening and accelerating the growth of its premium core brands, as well as drive out cost by re-investing in the growth of the business going forward to improve efficiency.
“We want to be the best most performing and most trusted in Nigeria. We believe that our strength is in our portfolio of heritage and our ability to innovate. We are currently focussing to grow our premium core brands. We expect that the operating environment will continue to be volatile because the currency will still be under pressure and government revenue. Inflation is also likely to continue.
“We are focusing on cost and driving growth from innovation will be part of our business, being aggressive and focussing on our premium core business, investing in our brand and road consumer. We believe in our strategy and continue to put a lot of investment into talent to reinforce and improve capability especially in sales side.”
He expressed optimism that the business strategy adopted would help consolidate its performance and increase shareholders value on a long term basis.
The Managing Director explained that 43 per cent of its raw materials are sourced locally to ensure business sustainability, adding that the company has concluded plans to increase it to 75 per cent in the next three years.
The Chairman of the company, Babatunde Salvage , assured that the company would continue to increase shareholders value and create employment opportunities through its business value chain.
Salvage, while fielding questions from Journalist on the N1 billion fine slammed on the firm by the National Agency for Food, Drugs Administration and Control (NAFDAC), said: “We believe we would be able to resolve the issue very quickly and our brand would continue to be an excellent one. We are very law abiding and try to follow the rule in line with international standard.
“It has to do with a small warehouse where we keep raw materials outside the factory. The materials were outside our factory not inside. It is not about our brand. We are taking it up and we believe resolve it amicably. We have been working with NAFDAC and we would continue to respect the law and produce quality products,” he added.