Slowdown Hits Guinness Nigeria’s Sales

Guinness Nigeria, the country’s second-biggest brewer, said half-year profit fell as an economic slowdown in Africa’s most populous country hurt beer consumption.

Net income declined 66 percent to 1.2 billion naira ($6 million) in the six months through December, the Lagos-based unit of London-based Diageo said in a statement published on the Nigerian Stock Exchange website on Monday. Revenue dropped 10 percent to 49.8 billion naira.

Nigeria, Africa’s biggest economy, is facing a squeeze in consumption as the nation of over 170 million people suffers from a slump in crude oil prices that has reduced the country’s main source of revenue. The nation’s economy probably grew 3 percent last year, the slowest pace since 1999, according to the International Monetary Fund.

Guinness Nigeria shares traded at 115.50 naira at the close in Lagos on January 29.

The shares are down 4 percent this year, compared with a 26 percent decline by larger competitor Nigerian Breweries, part owned by Heineken.