2015 Corporate Rating Review Report Guinness Nigeria Plc Issuer Rating A company with good financial condition and strong capacity to meet A- obligations as and when they fall due Outlook: Stable ATING ATIONALE Issue Date: 11 March 2016 R R Expiry Date: 31 December 2016 Agusto & Co. affirms the “A-“ rating assigned to Guinness Nigeria Plc Previous Rating: A- (“Guinness”, “GNPLC” or “the Company”). The rating assigned takes into cognisance Guinness’ good cash flow and improved leverage position as well as the overt support of the parent company (Diageo Plc) which controls Industry: Brewery 54.32% of the Company’s equity. Nevertheless, the Company’s rating is tempered by inadequate working capital and declining profitability. Outline Page Rationale 1 Guinness is one of the leading alcoholic and non-alcoholic beverage Company Profile 3 companies in Nigeria with the dominant market share in the stout segment. Financial Condition 5 The Company’s strong market share in the brewing industry in Nigeria is Ownership, Mgt & Staff 10 supported by a good brand name, technical & product quality assistance from Outlook 12 Financial Summary 14 its parent company and an improved Route To Market (RTM) strategy. Rating Definition 18 Although Guinness’ turnover grew by 9% during the financial year ended 30 June 2015 (FYE 2015), the six months unaudited figures for the period ended Analysts: 31 December 2015 showed a 10% decline in top line growth when compared Ikechukwu Iheagwam with corresponding figures of 2014. We consider this a rating concern on
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