Posts

Showing posts from August, 2020

GUINNESS NIGERIA & EAST AFRICAN BREWERIES - Same Ownership - Differing Loyalties

Dear Africa interested professionals: A throwback to a thematic analysis I did looking at Diageo's subsidiaries in Kenya and Nigeria in 2015 can be found below the dotted lines.  Five years later, nothing has significantly changed for the better.  Guinness Nigeria has sold its conscience to the Nigerian environment (opaqueness and self-serving decisions take center stage) while East African Breweries still tries to hold on to transparency and proper business management and this has reflected in its performance over the years.   Guinness Nigeria's better days are behind it and current actions do not bode well for the future.  When transparency goes out the door, there is nothing left behind worth admiring.  I will pick on two simple things to reflect on. 1 . Both companies made earnings expectation announcements to their respective stock exchanges for the fiscal year ended June 30, 2020 of a significantly negative performance relative to a year earlier.   East African Breweries