Guinness Nigeria Makes Impressive Results, Records 8% Revenue Growth in Q3 F’23

Guinness Nigeria, a subsidiary of Diageo Plc, and the leading total beverage alcohol company in Nigeria has continued its impressive growth trajectory, posting a revenue of N172,478,412 (one hundred and seventy-two billion, four hundred and seventy-eight million, four hundred and twelve thousand) for its third quarter period ended 31 March 2023, which represents an 8 per cent growth over the same period last year. 

The Company reported a Profit After Tax of N5,865, 691,000 (five billion, eight hundred and sixty-five million and six hundred and ninety-one thousand) in the period under review. The results which show an impressive performance, is testament to an unwavering commitment to meeting consumer demands as well as the company’s resilience in a challenging operating environment. 

Commenting on the report, Managing Director/CEO, Guinness Nigeria Plc Mr. . John Musunga, said: “In the first nine months of fiscal 23, Guinness Nigeria has delivered growth in the face of the challenging operating environment characterized by rising inflation, deteriorating foreign exchange situation, temporary cash scarcity, and election related anxiety and disruptions. Total net revenue grew by 8 per cent, driven by category mix optimization, pricing and organic volume growth in mainstream spirits, supported by excellent execution of our route to consumer strategy.” 

Musunga added: “Revenue growth was particularly strong for the strategic focus categories: Premium Stout, Ready-to-Serve, and Spirits. We continued to invest behind our strategic growth priorities to remain top of mind and command a premium to consumers who chose our brands for the value they bring to their occasions.”

The released statement stated that the company’s Gross Profit grew 6 per cent, and its distribution expenses increased by 24 per cent, driven by a nearly three times spike in the price of diesel and other haulage inputs. 

“The costs of goods grew faster than net sales revenue due to inflationary pressures and the impact of foreign exchange depreciation ; and increased administrative expenses in the period are driven by payroll inflation (mainly performance-related) and one-off tax provisions.” Musunga further explained. 

“Coming from an exceptional 2022 performance, operating profit softened by 24 per cent versus same period last fiscal, whilst it remains very strong at N17.4 billion considering the prevailing macroeconomic environment. The implicit 18 per cent devaluation of Naira caused the financing costs to spike by 1,696 per cent vs same period last year. We mitigated this, to some extent, by generating 67 per cent interest income growth from our investment of free cash.

“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 73nd year of existence in Nigeria, we remain fiercely committed to Nigeria and to having a positive impact on those around us and our consumers,” Musunga added. 

Chair of the Board of Guinness Nigeria Plc, Dr. Omobola Johnson,  who also commended 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.”.