Guinness records nine per cent revenue growth in Q1
Guinness Nigeria Plc's revenue increased by 9% in the first half of the fiscal year 2022, the company said in a statement on Saturday.
Guinness also reported a 16% increase in gross profit and a 5% increase in cost of sales despite a challenging business environment driven by inflation and the impact of naira devaluation on imported materials during the period under review.
In a statement, the Managing Director and Chief Executive Officer of the company, Mr John Musunga, said, "In the half year ended 31st December 2022, Guinness Nigeria delivered results that reflected the continued regulatory, competitive and inflationary challenges in the operating environment in Nigeria.
"The period was characterised by challenges such as escalating inflation, dwindling consumer disposable income, and a worsening foreign exchange situation. Despite these challenges, the company made good progress on our strategic focus brands.
"Despite lapping a strong quarter in 2021, revenue grew by nine per cent, benefiting from price and mix optimisation, as well as reflecting resilient consumer demand and improved outlet coverage as we continue to optimise our route to consumer.
"Revenue grew across most categories, driven by our strategic focus brands, Guinness, Ready-to-Serve, and Spirits. Malta Guinness was flat year on year due to increased pricing in response to higher inflationary pressures on packaging costs."
"Marketing expenses increased by 7% as we increased marketing investment to support our strategic growth priorities and target market share improvement," he added.
"Distribution expenses increased 28 per cent, driven by an increase in the price of diesel, other haulage inputs, and asset replacement cost. Despite all of this, the company generated an operating profit of N12.6 billion."
Musunga stated that the naira's continued depreciation resulted in a 758 percent increase in net financing costs due to the revaluation of hard currency debt.
He stated that finance income increased by 121% due to higher yields on short-term cash investments.
Dr Omobola Johnson, Chair of the Board of Guinness Nigeria Plc, stated, "The board is confident that our strategy is sound and will continue to drive value to all stakeholders in the long term."
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