Guinness Nigeria plc (GUINNE.ng) 2019 Annual Report

We have extracted the Chairman’s Statement from the 2019 Annual Report for Guinness Nigeria plc (GUINNE.ng), listed on the Nigerian Stock Exchange:

INTRODUCTION

Distinguished shareholders, representatives of regulatory agencies present, esteemed ladies and gentlemen, I feel honored to welcome you to the 69th Annual General Meeting of Guinness Nigeria Plc holding in the federal capital city of Abuja. I want to appreciate all our shareholders for the support you have given the Board and your Company over the years, especially in the last financial year despite the challenging economic environment in the country and I trust that we can count on your continued support.

Kindly now permit me to present to you, on behalf of the Board, the financial statements and reports for the financial year ended 30 June 2019. As usual, I will commence my address with an overview of the business environment and how it impacted our performance. 2018-2019

BUSINESS/OPERATING ENVIRONMENT

Over the past year there has been slight positive improvements in Nigeria’s macro-economic indices. Headline inflation rate has declined from 12.08% in late 2018 and moderated at between 11.0% -11.4% in the first half of 2019. There was also relative exchange rate stability during the year under review as a result of the sustained access to foreign exchange brought about by the continued operation of the Central Bank of Nigeria Investors and Exporters Window. On a positive note, there were successful general elections during the year with the incumbent political party returning to power at the federal level. The incumbent party also won majority of the seats in both the Senate and House of Representatives. It is our expectation that the business enabling policies and ease of doing business initiatives will be sustained in the 2nd term of this government. Despite the limited positive developments mentioned above, the nation’s socio-political and economic environment remains increasingly challenging.

According to