Adetu Leaves Guinness Nigeria As MD Amid Poor Performance

Managing Director of Guinness Nigeria Plc, Seni Adetu, has been asked to step down from his exalted office at the end of October 2014. He will formalise his exit at the next Board meeting of the company in November, Punch reports.

Adetu is leaving as MD of Guinness Nigeria following decline in the profit of the company in the last two years, about the time he has been at the helm of affairs at the company.

The newspaper quoted a statement released by the company on Monday that Adetu “will report to Nick Blazquez, President, Diageo Africa and Asia, starting January 2015.”

Guinness Nigeria Plc is a subsidiary of Diageo. Adetu has been the company’s boss for about two and half years. John O’Keeffe has already been named as his successor.

It was reported that Guinness Nigeria Plc has performed poorly compared to some of its competitors in the last two years Adetu has been steering the ship of the reputable organisation. Though the company has been making profit, but it has declined and the management felt drastic step has to be taken to reposition the organisation.

Guinness Nigeria Plc’s revenue rose by four per cent in the financial year ended June 30, 2013, but 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, the paper reported.

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, it said further.

Punch also said that ‘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 company’s shares have also declined significantly in price this year.’