Guinness Nigeria Plc, a leading player in Nigeria’s total beverage alcohol industry and a subsidiary of Diageo Plc., has unveiled its unaudited financial results for the nine-month period ending March 31, 2024. Despite facing unprecedented challenges within the economic landscape, the company showcased resilience and adaptability, posting a remarkable 28% year-on-year revenue growth.
The company’s revenue soared to ₦220.3 billion, a substantial increase from ₦172.47 billion recorded in the same period the previous year. Particularly noteworthy was the third quarter, witnessing an impressive 44% acceleration, indicating a strategic shift amidst evolving market dynamics.
Guinness Nigeria attributed this surge to proactive pricing strategies and optimized product offerings, focusing primarily on premium categories to sustain growth momentum. Despite grappling with challenges such as soaring inflation rates, currency devaluation, and food insecurity, the company demonstrated resilience.
Operating profit surged by 27% to ₦22.21 billion, propelled by robust revenue performance and a relentless drive for productivity across the organization, despite inflationary pressures.
However, amidst the triumphs, challenges persisted, notably in the form of significant unrealized forex losses amounting to ₦81 billion. This was primarily due to the continued devaluation of the Naira, closing the quarter at N1,351/$1. Nonetheless, recent trends suggest a potential reversal, with the Naira showing signs of stability in recent weeks, offering hope for exchange rate gains in the last quarter of the fiscal year.
Adebayo Alli, the Managing Director/CEO of Guinness Nigeria Plc., expressed confidence in the company’s ability to navigate the volatile macroeconomic environment. He emphasized the company’s steadfast focus on innovation and operational excellence to meet evolving consumer preferences while prioritizing long-term sustainability and shareholder value.
Guinness Nigeria, a subsidiary of Diageo Plc., boasts a wide portfolio of brands catering to both non-alcohol and alcohol drinkers. Some of its well-known brands include Guinness Foreign Extra Stout, Malta Guinness, Orijin Bitters, and Smirnoff Vodka, among others.
Established in 1950, Guinness Nigeria is one of the oldest serving manufacturing companies in Nigeria, with a rich history of delivering quality products to consumers.
As the company looks ahead, the Board remains committed to evaluating and adapting its strategy to respond to the ever-changing business landscape, with a focus on delivering returns to shareholders and creating long-term value for stakeholders.
REF: Nairametrics
