Guinness Reports Strong Performance with 20% Increase in Revenue

Raheem Akingbolu 

Guinness Nigeria, a leading beverage alcohol company in Nigeria continues to show resilience in the face of a challenging macro-economic environment, characterised by a marked decline in consumer spending due to escalating inflation, continuous naira devaluation and, reduced cash in circulation. The Company has posted a revenue of N142.59 billion for its half-year ended 31 December 2023, a growth of 20 per cent over previous year.

The unaudited result released to the Nigerian Exchange Group (NGX) showed a 31 per cent increase in operating profit in the period under review, while its reported revenue growth was primarily fueled by sound pricing strategies and a carefully optimized product mix, emphasizing the premium categories. The Company further bolstered sales by increasing trade and consumer engagement initiatives, optimizing its route-to-consumer strategy to broaden its outlet coverage, and leveraging its digital capabilities.

Impressively, operating profit increased by 31 per cent and the operating margin expanded by 90bps, fueled by 9 per cent increase in gross profit, gains from other income (Export Expansion Grant), and reduced operating costs, even as brand investment increased by 15 per cent.

Commenting on the results, the Managing Director/CEO of Guinness Nigeria Plc, Mr Adebayo Alli stated that, “while this was a commendable performance in the face of very challenging macro environment, regrettably, the persistent devaluation of the Naira led to a substantial (N18bn) unrealized foreign exchange loss, which caused a 161 per cent decline in profit before tax, closing the half-year at a loss of N4.4billion.”

He however stated that, “management of the Company remains committed to taking all steps and proactive actions necessary to continue delivering value to its stakeholders.”

Also commenting on the results, the Board Chair, Dr. Omobola Johnson stated that ”despite the significant macro-economic challenges faced by the Company, the Board remains confident in the Company’s well-devised strategy and will continue to support management to implement the strategy in a manner that delivers sustainable value to all stakeholders.”