Guinness profits take a nosedive in Nigeria

GUINNESS has taken a dive in profits at its Nigerian operation as it splashes out on new products.

Guinness Nigeria, which contributes around 10% to group operating profits, saw earnings dip 39% in 2004/2005 as it spent €20 million (3.6 billion Nigerian naira) developing a trendier bottle for the Nigerian market.

The firm, Nigeria’s second largest beverages maker, said the launch of the new bottle slashed net profit for the year to end-June 2005 to €30 million from €50.4m in the previous year.