GUINNESS Nigeria, a subsidiary of Diageo Plc, and the leading total beverage alcohol company in Nigeria has continued its impressive growth trajectory, posting a revenue of N159,444,503 for its third quarter period ended 31 March 2022, which represents a 39 per cent growth over the same period last year.
The Company reported a Profit After Tax of N15,278, 335,000 in the period under review which represents a 731 per cent growth over same period last year.
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 the company’s resilience in a challenging operating environment.
Commenting on the announcement, Mr. Baker Magunda, Managing Director/CEO, Guinness Nigeria Plc said: “In the first nine months of fiscal 22, Guinness Nigeria 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 3 months ended 31 March 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.”
The released statement stated that 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.
“We increased marketing investment to support our strategic growth priorities and the recovery of the on-trade. Distribution expenses also increased 36 per cent driven by higher volumes, freight and diesel inflation and extended journey time for road transportation. All of our efforts delivered an operating profit growth of 200 per cent to N22.9 billion.” Magunda explained.
Dr. Omobola Johnson, Board Chair of the Board of Guinness Nigeria Plc, in also commending the impressive result, 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”.