Guinness Declares 111% Revenue Growth to N125.9bn amid Economic Challenges
Kayode Tokede
Guinness Nigeria Plc on the Nigerian Exchange Limited (NGX) announced its unaudited financial results for the first quarter ended September 30, 2024 with revenue at N125.9 billion, an increase of 111 per cent increase from N59.54billion reported in first quarter ended September 2023.
According to the company, the revenue growth is driven by innovative product offerings, enhanced consumer engagement, and effective expansion of its retail footprint.
Guinness Nigeria reported a 170per cent increase in cost of sales, driven by volume growth alongside rising input costs and exchange rate fluctuations. This led to a decline in operating profit, with the company posting a loss before tax of N16.0 billion.
However, a favorable tax position, primarily due to deferred tax assets, reduced the overall loss to N12.1 billion.
Meanwhile, despite this top-line growth, the company faced significant cost pressures, primarily due to inflation and the continued depreciation of the Naira, which increased the cost of raw materials, packaging, and utilities.
The Chairman of the Board of Directors, Guinness Nigeria, Dr. Omobola Johnson, in a statement said: “Our robust revenue performance reflects the resilience of our brands and the strength of our market presence. However, the difficult macroeconomic environment, characterized by rising costs and currency volatility, has impacted our profitability.
“As a Board, we are confident in management’s ability to execute the necessary strategic initiatives to strengthen our operations, enhance efficiency, and position the business for long-term growth. We remain focused on creating sustainable value for all our stakeholders.”
Also speaking, Guinness Nigeria, Managing Director, Girish Sharma, expressed optimism about the future stating that: “Our revenue growth demonstrates the strength of our brands and the effectiveness of our consumer engagement strategies.
“However, we are fully aware of the impact that inflation and currency depreciation have had on our cost structure. Our immediate focus is on improving operational efficiency, restoring profitability, and empowering our teams to deliver more value. We are confident that these actions will drive our financial recovery and position Guinness Nigeria for sustainable success.”
Looking ahead, he pointed out that Guinness Nigeria remains committed to leveraging its strong brand portfolio, driving operational efficiencies, and exploring opportunities for innovation and further improvement in local sourcing. Sharma pointed out that the leadership team is actively implementing strategies to mitigate the impact of the macroeconomic environment while maintaining a sharp focus on delivering value to shareholders.
