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  • Guinness Nigeria boss reveals factors pulling company’s profit
  •  Guinness Nigeria boss reveals factors pulling company’s profit


    Guinness laid issues like port congestion, tax reforms and decline in alcohol pricing have eaten deep into the company’s profit, affecting the operations of the company.

    BUSINESS NEWS

    Published 7 months ago on February 21, 2020

    By Fakoyejo Olalekan

    The management and investors of Guinness Nigeria Plc are currently not smiling and that is connected to some factors that have eaten deep into the profit of the company. This was disclosed by the Managing Director of the firm, Baker Magunda in Lagos.

    A far as the Guinness boss is concerned, Nigeria’s business environment has not been favourable for his company and provoking to the ease of doing business in the country.

    Listing issues that have eaten deep into the company’s profit, Magunda outlined port congestion, tax reforms and decline in alcohol pricing. According to him, they have been affecting the operations of Guinness Nigeria and that the company has been burning cash to transport its products across the nation.

    He added that the company is also struggling with government policies like the increased excise duties on beer and stouts, which was rose to N0.30 kobo per centilitre (Cl) in 2018 and N0.35 kobo per Cl each in 2019 and 2020.

    Also, President Muhammadu Buhari-led administration had increased VAT rate from 5% to 7.5%, as well as implementing other tax reforms that have caused inflation pressure.

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