Guinness Nigeria Reports 731% Increase in Profit to N15.28bn
Kayode Tokede
Guinness Nigeria Plc has continued its impressive growth trajectory, posting a profit after tax of N15.28billion in unaudited third quarter (Q3) ended March 31, 2022, an increase of 731 per cent from N1.84 billion reported in unaudited third quarter (Q3) ended March 31, 2021.
The company reported a revenue of N159.4billion in Q3 2022, which represents a 39 per cent growth over the N114.96 billion reported in Q3 2021.
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.
Commenting on the announcement, Managing Director/CEO, Guinness Nigeria, Mr. Baker Magunda in a statement 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.
“The business has delivered growth in the face of the challenging operating environment characterized by rising inflation and forex challenges in the three months ended March 31, 2022. Revenue grew by 39per cent 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,” Magunda said.
He added that Gross Profit grew 76 per cent in the period as revenues grew ahead of cost of sales.
Cost of Sales increased by 24per 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% versus last year as it increased its marketing investments.
“We increased marketing investment to support our strategic growth priorities and the recovery of the on-trade. Distribution expenses also increased 36per cent 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 200per cent to N22.9 billion,” Magunda added.
