Johnson to fill Savage’s ‘big shoes’ in Guinness as 40-year journey ends
Guinness Nigeria plc has informed the Nigerian Exchange (NGX) Limited, the investing public and other stakeholders of the retirement of Babatunde Savage from the Board of the company with effect from June 30, 2021.
Savage, in his letter to the Board in compliance with applicable Corporate Governance regulations, expressed his pleasure at the opportunity to have been a part of the Guinness story over the last four decades.
As Savage’s journey with Guinness Nigeria comes to an end next month after almost 40 years, the company has also appointed former Nigerian minister of communication technology and serving Guinness Nigeria Board member, Omobola Johnson, to assume the role of Board chairman with effect from July 1, 2021.
This implies that Johnson as incoming Board chairman will continue the path of hard work to ensure that equity investors in Guinness Nigeria get value for their investments.
Guinness Nigeria’s shares have far outperformed the market’s benchmark index. The share price at N27.10kobo as of May 4 shows it has gained 42.6 percent this year, outperforming the All Share Index (ASI) that printed at a negative of 1.16 percent year-todate (ytd) on the same day.
At the NGX, the unaudited financial statements of Guinness Nigeria for the nine months period ended March 31, 2021, show its revenue grew to N114.956 billion from N96.019 billion compared with corresponding period of 2020, up by 19.7 percent.
Gross profit increased by 5.3 percent to N32.429 billion from N30.803 billion in the corresponding period of 2020. Profit Before Tax (PBT) of N4.463 billion against N2.006 billion in nine-month of 2020 implies an increase of 122.5 percent; while Profit After Tax (PAT) of N1.838 billion in the nine months period implies an increase of 35 percent from N1.362 billion in corresponding nine months period of 2020.
Cumulatively, Guinness Nigeria’s 2.190 billion shares on the NGX are valued at N62.863 billion. Guinness Overseas Limited accounts for 50.18 percent stake in the Nigerian unit; Atalantaf Limited (7.84%), while other investors stake is 41.98%.
Chinma Ukadike’s team of equity research analysts at Lagos-based Vetiva Capital Management want investors to “Buy” shares of Guinness Nigeria. The analysts’ “Buy” rating for Guinness stocks was as a result of their belief that it is highly undervalued, but with strong fundamentals, and has potential return in excess of or equal to 15 percent realisable between the current price and analysts’ target price (TP). Vetiva analysts target price for Guinness Nigeria is N31.22 per share.
Johnson, who is currently a serving member of the Guinness Nigeria Board, has over 30 years of experience from both the private and public sectors of the Nigerian economy.
Savage also thanked the Board of Guinness Nigeria and Diageo UK for the opportunity to have served in many capacities, first as an employee who held various strategic senior roles, then as an Executive Director and later the chairman of the Board, a role he has held for nearly 12 years.
He also noted his unwavering support for Guinness Nigeria, Diageo, and its iconic brands. “After almost 40 amazing years, my journey with Guinness Nigeria is coming to an end. Guinness Nigeria is and will always be family to me,” he said.
The vice-chairman of the Board and president, Diageo Africa, John O’keeffe, thanked Savage on behalf of the Board of Diageo plc, the parent company of Guinness Nigeria, for his invaluable contributions to the success of Guinness Nigeria over the last 40 years.
Commenting on her appointment, the former pioneer minister of communication technology for Nigeria, and former country managing director for Accenture, said, “Guinness Nigeria is an excellent company with tremendous value creation opportunities. I believe the refreshed Board and the management team remain committed to achieving outstanding performance and maximising shareholder value.”
Guinness Nigeria is one of Nigeria’s largest brewers. Guinness’ brand portfolio includes premium Guinness Foreign Extra Stout, mainstream Harp Lager, Malta Guinness and Orijin.
Parent company, Diageo, owns a 54 percent stake in Guinness. Guinness in 2016 acquired exclusive rights to distribute Diageo’s International Premium Spirits brands in Nigeria and brands from United Spirits Limited (Diageo’s Indian subsidiary).