Guinness Nigeria reports 731% Net Profit Increase

Not sure if it is due to the hardship in the country that more people are drinking or its just better marketing from Guinness Nigeria Plc but it seems the company has continued its impressive growth trajectory, posting a net profit growth of 731 per cent for its third quarter (Q3) period ended March 31, 2022.

The company’s results released on the Nigerian Exchange (NGX) showed a revenue of N159.445 billion in Q3, 2022, which represents a 39 per cent growth over the same period last year. Guinness Nigeria reported a profit after tax of N15.278 billion in the period under review which represents a 731 per cent growth over same period last year.

The company said: “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 our resilience in a challenging operating environment.”

Speaking on the results, managing director/CEO, Guinness Nigeria, Mr. Baker Magunda, said, “In the first nine months of fiscal 22, the company 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 39 per 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.

Gross profit grew 76 per cent in the period as revenues grew ahead of cost of sales. Cost of sales increased by 24 per 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 per cent versus last year as it increased its marketing investments.

“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 72nd year of existence in Nigeria, we remain fiercely committed to Nigeria and to having a positive impact on those around us and our consumers. We launched a give-back campaign in honour of our anniversary and have delivered care packages to 72 NGOs, 72 churches and 72 mosques in our host communities; among other initiatives. All of these efforts are in line with strategy for consistent delivery of value for all stakeholders,” he added.

The board chair of the Guinness Nigeria, Dr. Omobola Johnson, 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.”