Guinness shareholders okay N1.01bn dividend following stellar FY21 performance
APPARENTLY SATISFIED WITH THE FULL YEAR 2021 performance of Guinness Nigeria, the company’s shareholders have approved a dividend payout totalling N1.008 billion that was proposed by the board at its recently held annual general meeting.
The company reported a 54 percent year on year growth in revenues to N160 billion for the year ended 30 June 2021, a performance for which the shareholders expressed satisfaction and approved the dividend recommended by the company’s board of directors.
Omobola Johnson, chair of the board, at the 71st general meeting, while appreciating the support of the shareholders, maintained that the company will keep up with its growth strategy to continue on its path of profitability.
“We are confident that our strategy is comprehensive and robust. We are keen on making the right investments that will drive growth across the board and ensure our competitiveness, despite the challenging business environment. We thank our shareholders for their confidence in the board and management of our dear company and we are committed to ensure that we sustain the momentum,” Johnson said while also explaining that innovation was at the heart of Guinness’ success.
“As a company, we keep tasking ourselves regarding innovation and how best to satisfy our consumers with our innovative products. An example is the recent launch of Orijin Tigernut and Ginger; an exciting new variant of the Orijin brand to expand profitability for the brand, while catering to a younger, vibrant demography of consumers. As the only Total Beverage Alcohol Company in Nigeria, we are proud of the legacies of our iconic brands and we hope to keep on turning out products that will make our consumers happy and satisfied.
“We are also glad that our promise to you last year is being fulfilled as we have been able to implement our strategies and improve on revenue projections as manifested in our financial results. The board will continue to support the management in its efforts to sustain global best practices aimed at consistently delivering business growth for stakeholders,” she said.
Baker Magunda, managing director of the company, expressed optimism and strong outlook for the company, emphasizing that some key strategic decisions of the company in the last year increased the chances of the company’s journey to sustained profitability.
Indigenous textile designing in Nigeria consists of cotton fabrics, dye, chemicals and industrial waxes. However, it is quite discouraging that none of these integral production materials are sourced from Nigeria.
How viable is the adire production business and what does a modern production company require in a developing economy like Nigeria?
Adire production is and will always remain a viable business. This is because it solves one of the basic needs of humans, which of course is clothing. Moreso, the fact it promotes our cultural values is what will continually make it indispensable in this dispensation and dispensations to come.
A modern production company may need to come up with machines that will possibly target the limitations of the skill, which of course includes mass production, weather control and protection of intellectual property.
What have been the effects of the COVID-19 pandemic on business operations, your driving force and prospects postcovid?
our business activities when the pandemic was at its peak. However, the aftermath of covid-19 increased our human resources owing to the fact that quite a number of youths and women were able to see the importance of venturing into entrepreneurship over paid employment. The emergence of covid-19 also engendered empowerment initiatives, which you Adire as an organisation has benefitted from in no small measure.
As I speak,after the covid-19 invasion ,You Adire has been able to empower more than a thousand women in the art of textile ,in which over 60 per cent of the women taught have been able to embrace the art of making Adire as their major business or side hustle.
Those looking to go into it at scale what are the value chains involved in the sector and how can it for investment: small, medium and large-scale basis?
The textile designing value chain starts from fabric and dye sourcing, designing, sewing, modelling, skill transfer (empowerment), book publishing and sales. Investors may decide to put in their money on any of these aspects
As an entrepreneur in one of the subsectors of the textile industry, what is your assessment of the Nigerian textile industry and the impact of its value chain to the Nigerian economy?
Candidly speaking,as a descendant of a textile designing family,I will say Nigeria as a country is yet to exploit the vast opportunities inherent in this sector. Foremost,there’s a need for us to own our process i.e being in charge of the major resources used.
Also, there are needs for machines that will expedite the work process thereby making it less stressful and more productive. Talking about its impact to the value chain, Adire making as a business has created and is still creating more employment for youths and adults across boards whilst serving as a means of tourist attraction, thereby promoting our cultural heritage.
Moreso,the emergence of new uses for the fabric which includes Adire soft furnishings like chairs,sofa,throw pillow, curtains and accessories keeps increasing its value chain in no small measure.
Do you think the textile industry possesses the capacity to meet the country’s demand and compete favourably with foreign competitors?
Not to deceive ourselves, I’ll say a mild No, owing to the fact that quite a number of the basic production materials are imported. Moreso, the fact that adire making is still limited to 80 per cent manual operation serves as another form of limitation.
However, we are optimistic that the appropriate authorities concerned would develop interest in this unique sector someday and do something about it. In our little ways, we keep trying our best to ensure indigenous textile designing in Nigeria attains its desired heights.
What do you think are the major challenges facing the industry and how do you think these it can be effectively controlled and managed?
Some of the major challenges affecting the industry includes; sourcing for raw material, mass production control, and standardised procedure of production. As mentioned, there are needs for increased output in the sector.
This can only be achieved when machines, which would expedite and not necessarily take over the production process invented. Moreso,there’s a greater need for us to ensure that the raw materials (including dyes) used for these designs are sourced locally.
What are the basic actions or policies you think government as well as industry players need to implement to ensure sufficient production and bolster exportation?
There’s a need for our government to get closer to the entrepreneurs, and we have made it easier by joining Business Membership Organisations (BMOs) such as NECA’S Network of Entrepreneurial Women(NNEW),National Association of Small Scale Industrialists (NASSI) and more that will make easy liaising possible with the decision makers in the country.
What is your assertion of the African Continental Free Trade Area (AfCFTA) and its impact towards the development, marketing and export of “Made in Nigeria” outfits.
I think it is a wonderful initiative,however we’ll be interested in seeing actions over mere deliberations.