Guinness Nigeria reports 110% increase in profit to N1.25bn

Guinness Nigeria, Stanbic IBTC,

Guinness Nigeria Plc, a subsidiary of Diageo Plc, has announced its audited results for the period ended June 30, 2021 revealing a 110 per cent increase in profit after tax to N1.25billion from loss of N12.6billion reported in full year ended June 30, 2020.

The company said it recorded double digit growth across all key categories despite the impact of COVID-19 restrictions and economic challenges.

As a result, the management recommended N1,008 million dividend, subject to shareholders’ approval at the forthcoming Annual General Meeting (AGM).

The audited results, which were released to the Nigerian Exchange Group (NGX) indicated that revenue increased 54per cent to N160 billion in 2021 from N104.4 billion reported in 2020

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Managing Director/CEO, Guinness Nigeria Plc, Mr. Baker Magunda, in a statement said: “The performance of fiscal 2021 showed that the business delivered growth despite the challenging external environment characterized by COVID-19 restrictions and high inflation.Revenues grew double digit across all key categories, particularly our strategic focus brands Guinness, Malta Guinness as well as our local and imported spirits.”

“This was supported by improved product mix and headline price increases in key brands. Gross margins declined by three per cent driven by inflationary pressure, a shift towards more expensive can products given at-home consumption trends, and forex devaluation impacting some materials.” Magunda explained.

The company, however, revealed that its net finance costs remained on similar level as last year despite the lower debt position, due to the devaluation of Naira impacting the foreign currency denominated trading balances.

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“Tax was impacted by a one-off historic charge. Profit before tax increased to N5.8 billion, a 134 per cent growth versus same period last year; and Distribution expenses increased by 22per cent versus last year behind volume growth due to efficiency improvements across distribution channels, ”Magunda said.

“Going into the new fiscal year, we are conscious of the continued challenging operating environment with double-digit inflation and pressured consumer income spending. However, we will continue to focus on our strategy – optimising our route to consumer, innovating at scale to satisfy our consumers and improving cost control – as we continue to emerge stronger from the current crisis. We remain confident about the execution and resilience of our Total Beverage Alcohol strategy as a key driver of sustainable growth in the market, ”he added.

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Chairman of the Board of Guinness Nigeria Plc, Dr. Omobola Johnson, assured that: “the Board will continue to support Management in its efforts to sustain global best practices aimed at consistently delivering business growth for stakeholders. We remain confident that the strategy is comprehensive and robust, and that we are making the right investments in the company to ensure our long-term competitiveness.”


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