Finance

Guinness Nigeria profit up 731%, records N159.444bn revenue in Q3 2022

Q3 2022: Guinness Nigeria Profit Up 731%, Records N159.444bn Revenue

 Guinness Nigeria, a subsidiary of Diageo Plc, and the leading total beverage alcohol company in Nigeria continued its impressive growth trajectory in its third quarter period ended March 31, 2022 unveiled to the management and stockbrokers of the Nigerian Exchange (NGX). 

The company reported profit after tax of N15.278 billion in the period under review which represents a 731 per cent growth over the comparable period of 2021 while it posted revenue of N159.444 billion for which represents a 39 per cent growth over the same period last year. 

The results show an impressive performance and a significant improvement when compared to the same period last year, a testament to an unwavering commitment to meeting consumer demands as well as the company’s resilience in a challenging operating environment. 

Mr. Baker Magunda, Managing Director/CEO, Guinness Nigeria Plc, while commenting on the announcement, said: “In the first nine months of fiscal 22, Guinness Nigeria continued to grow on the back of the strong recovery in the first half of fiscal 22. 

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“The business has delivered growth in the face of the challenging operating environment characterized by rising inflation and forex challenges in the 3 months ended 31 March 2022. 

“Revenue grew by 39% to N159.4 billion benefitting mainly from price increases across all brands, as well as from favorable brand mix and resilient consumer demand. 

“We have delivered revenue growth across all key categories driven by our strategic focus brands, Malta Guinness and Guinness, as well as strong growth in local and imported spirits and the ready-to-drink category. This has further showed that our strategy is sound, and we are unwavering in our commitment to ensuring our long-term competitiveness in Nigeria”. 

Gross profit grew 76 per cent in the period as revenues grew ahead of cost of sales. Cost of sales increased by 24 per cent, largely due to inflationary pressure, sales volume growth, forex devaluation impacting imported materials, air freight cost increase and a shift towards more expensive can products. 

The company also noted that its Marketing expenses increased 68 per cent versus last year as it increased its marketing investments. 

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“We increased marketing investment to support our strategic growth priorities and the recovery of the on-trade. Distribution expenses also increased 36% driven by higher volumes, freight and diesel inflation and extended journey time for road transportation. All of our efforts delivered an operating profit growth of 200 per cent to N22.9 billion.” Magunda explained. 

“The management at Guinness Nigeria remains resolute in its business strategy, as well as its engagement of stakeholders across its value chain. As we enter our 72nd year of existence in Nigeria, we remain fiercely committed to Nigeria and to having a positive impact on those around us and our consumers. 

“We launched a give-back campaign in honour of our anniversary and have delivered care packages to 72 NGOs, 72 churches and 72 mosques in our host communities; we opened our new ultra-modern headquarters in the heart of Ogba Ikeja and we continue to take giant strides towards championing Inclusion & diversity with the extension of our women’s empowerment program tagged ‘Plan W’ to more rural communities in Owerri, Benin and Oshogbo; and in driving responsible drinking with the nation-wide adoption of our E-learning Responsible Drinking Education Module themed “The Wrong side of the Road”. All of these efforts are in line with strategy for consistent delivery of value for all stakeholders.” Magunda added. 

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Dr. Omobola Johnson, Board Chairman Guinness Nigeria Plc, while commending the impressive result, said, “The board remains confident that our strategy is sound and will continue to support the Management to build a business that will consistently deliver sustainable growth for all our stakeholders”. 

Independent

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