Guinness Nigeria MD, Seni Adetu Steps Down On The Heels Of 2yr Poor Performance

The helmsman at brewery company, Guinness Nigeria Mr Seni Adetu leaves his office at the end of the month- October 2014.

This development comes in the midst of dropping profit for the past two years societynowng.com learnt.

Mr Adetu has been in the saddle as Managing Director for two years and half.

According to information obtained by societynowng.com from daily newspaper, Guinness

Nigeria’s performance compared to competitors for the past two years.

The reputable publication categorically stated in a report penned by Akinpelu Dada

‘Although the company has remained profitable, its profits have, however, been on the decline.

Although the company’s revenue rose by four per cent in the financial year ended June 30, 2013, its profit before tax and profit after tax fell by 17 per cent to N17.009bn from N20.383bn and N11.864bn from N14.215bn a year earlier.

Its basic earnings per share and fully diluted earnings per share were both down by 18 per cent to N793 from N964 in the same period.

‘The performance did not improve the year after as the financial year ended June 30, 2014 saw its revenue dip by 11 per cent to N109.202bn from N122.46bn. Its profit before tax fell by 31 per cent from N17.009bn to N11.681bn, while its profit after tax declined by 19 per cent to N9.573bn from N11.864bn.

The basic earnings per share and fully diluted earnings per share declined further by 20 per cent to N636.

Despite the drop, the company has continued to pay dividends to its shareholders. It paid N10.5bn, representing N7 per 50 kobo ordinary share for the year ended June 30, 2013, and declared a payment of N3.20 for the year ended June 30, 2014, subject to the approval of its shareholders at its Annual General Meeting scheduled for November 13.’

The report went on to deliver an ominous verdict

‘The company’s shares have also declined significantly in price this year.’

In his defence, Adetu who held the positions of Managing Director Guinness Ghana Breweries Limited and East African Breweries Limited before his current position had attributed the situation to investments made by the company in line with growth plan.

And the ongoing drop in revenue as ‘temporary’.

According to information obtained Adetu’s exit will be formalise at the upcoming Board of Directors meeting scheduled for November.

The gravity of his situation is however apparent in circumstances surrounding his next move.

While a replacement – John O’Keeffe- as been announced before he official leaves office, Adetu’s future at the multinational organisation is listed as ‘will be the subject of a further announcement’.

Company statement on the issues further revealed ‘Adetu will report to Nick Blazquez, President, Diageo Africa and Asia, starting January 2015’

It is however instructive to note that Adetu attempted to arrest company’s sliding performance with the introduction of variety of products aimed at muscling into competitors growing hold of the market.