Orijin is the innovative product of Guinness Plc in 2013. It consists of Ready to drink and spirits drink (herbal) forms which have contributed immensely to the company’s fundamentals as recorded in its growth trajectory and in the ability to sustain its return on investment to its shareholders at the year end. The growth was as a result of the success of Guinness herbal drink “Orijin” which was well received by the market and accounts for about 30% of its unit volume. Therefore, the marketing gimmick adopted by the company that says “If e no be Orijin, e no be orijinal” has attracted most customers to prefer it to other brands and to its competitors’ similar brand- ACE, herbal drink.
Orijin Ready to drink is a bittersweet blend with the flavours of African herbs and fruits. It is available in 30 cl., 60cl. bottle and 33 cl. Can. Orijin Bitters is locally produced premium spirit with herbal extract from African origin. It is available in 20 cl. PET and 75 cl. Glass and was launched in December 2013. It was a great success from inception and has helped to growth the company’s bottom-line in a positive manner.
In order to appreciate the contribution of Orijin to the company’s bottom-line, we need to look at the balance sheet prior to the innovation of Orijin and compare it to when it was introduced. The product was introduced in December 2013, which means a cursory look at the audited report 2012 (before) and 2013 (after) will suffice in the analysis. In 2013, their total asset was N121.060 billion compared to N106.009 billion, an increase of +14.20%. Out of which its Total current assets was N32.238 billion from N28.778 billion, which translates to an increase of +12.02%. Such assets include trade and other receivables which rose from N9.498 billion in 2012 to N15.138 billion, translating to an increase of +59.38%.
Guinness audited report F13 and F12 Comparison:
|
|
2013 (N) |
2012 (N) |
Variance (N) |
% Change |
|
Revenue |
122.463 B |
116.461 B |
6.002 B |
+5.15 |
|
Cost of Sales |
(66.385 B) |
(61.278 B) |
(5.107 B) |
+8.33 |
|
Operating Profit |
20.614 B |
21.895 B |
-1.281 B |
-5.85 |
|
Profit Before Tax |
17.008 B |
20.383 B |
-3.375 B |
-16.56 |
|
Taxation |
(5.145 B) |
(6.168 B) |
(1.023 B) |
-16.59 |
|
Profit After Tax |
11.863 B |
14.214 B |
-2.351 B |
-16.54 |
|
Dividend per share |
700 k |
800 k |
-100 K |
-12.50 |
Guinness Nigeria Plc, a public limited liability company currently quoted on the Nigerian Stock Exchange, was incorporated on 29 April 1950 as a trading company importing Guinness Stout from Dublin.
Shareholders Number of Shares Percentage
Total Holdings = 1,505,888,188 shares
Guinness Overseas Limited = 699,892,739 shares (46.48%)
Atalantaf Limited = 118,052,388 shares (7.84%).
Nigerian Investors holds = 687,943,061 shares (45.68%) of total shares.
Market Statistics:
Shares in issue = 1,505,888,188
52 Weeks High = N185.00 k
52 Weeks Low = N113.40 k
52 Weeks Change = 63%
Last Price = N139.80 k
P/E Ratio = 21.99
EPS = 6.35736
Price/Book Value = 4.67
Dividend = N3.20 Kobo per share
Bonus = No bonus
Flagship Brands: The Company has a strong portfolio of alcoholic and non-alcoholic beverages such as Guinness Foreign Extra Stout, Guinness Extra Smooth, Malta Guinness, Malta Guinness Low Sugar, Harp Lager, Smirnoff Ice, Satzenbrau Pilsner Lager, Dubic Lager, Snapp, and Orijin.