Guinness Nigeria reports 111% revenue growth amid economic challenges; Focus on strategic pivot

Guinness Nigeria Plc, a leading player in the alcoholic beverages market, today announced its unaudited financial results for the quarter ended September 30, 2024. increasing consumer engagement and effectively expanding retail presence.

Revenue increased from N59.5 billion in the same period last year to N125.9 billion, a testament to the diversity of Guinness Nigeria’s portfolio and its focus on creating strong consumer connections. Despite this revenue growth, the company faced significant cost pressures, primarily due to inflation and the ongoing depreciation of the naira, which resulted in increased costs of raw materials, packaging and utilities.

Dr. Omobola Johnson, Chairman of the Board of Directors, commented on the results:

“Our strong revenue performance reflects the strength of our brands and the strength of our market presence. However, the challenging macroeconomic environment, characterized by rising costs and foreign exchange volatility, has impacted our profitability. As the Board of Directors, we are confident in management’s ability to implement the necessary strategic initiatives to strengthen our operations, improve efficiency and position the business for long-term growth. We remain focused on creating sustainable value for all our stakeholders.”

Guinness Nigeria reported a 170% rise in cost of sales, driven by rising volumes along with rising raw material costs and exchange rate fluctuations.

This led to a decline in operating profit, with the company posting a pre-tax loss of N16.0 billion. However, a favorable tax position, primarily from deferred tax assets, reduced the overall loss to N12.1 billion.

Girish Sharma, Managing Director of Guinness ignore Plc, expressed optimism about the future, saying 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 of inflation and currency depreciation 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 contribute to our financial recovery and enable Guinness Indonesia to achieve sustainable success.”

Looking to the future, Guinness Nigeria remains committed to leveraging its strong portfolio of brands, improving operational efficiencies, and exploring opportunities for innovation and further improvement of local sourcing. Management is actively pursuing strategies to mitigate the impact of the macroeconomic environment while maintaining a strong focus on creating shareholder value.

As we navigate these challenging times, the company remains optimistic about the future with a clear strategy to enhance business resilience and capitalize on opportunities in Nigeria’s dynamic beverage market.

About Guinness Nigeria Plc

Guinness Nigeria is a leading alcoholic beverages company in Nigeria with a broad portfolio of brands serving non-alcoholic and alcoholic beverage consumers including malt, ready-to-drink, spirits, stout and beer. Some of its famous and respected brands include Guinness Foreign Extra Stout, Guinness Smooth, Malta Guinness, Orijin Bitters, Dubic Malt, Gordons Pink Berry, Gordons Orange Sunset, Smirnoff Ice, Smirnoff X1 Choco Vodka, Smirnoff Pine-apple. Punch, among other things.
With a very clear goal of “To be one of the most effective, most trusted and respected consumer goods companies in Nigeria”, Guinness Nigeria is committed to its sustainability and responsibility commitments which focus on three areas: Promoting Positive Drinking , supporting inclusion and diversity. and pioneering sustainable development from grain to glass. The company continues to advocate for responsible drinking and community development.