Guinness Nigeria Achieves 31% Revenue Growth

Guinness Nigeria Plc has reported a 31% year-on-year revenue increase for the fiscal year ending June 30, 2024. In a statement released on Tuesday, Guinness highlighted that this strong performance was particularly evident in the second half of the year, where revenue growth accelerated to 41%, compared to 20% in the first half.

The company noted that this achievement was remarkable given the tough macroeconomic conditions, which included high inflation, currency devaluation, the removal of fuel subsidies, and food insecurity.

Revenue growth was attributed to an optimized category mix, innovative product offerings, and strategic price increases to counteract rising costs.

“Non-alcoholic malt, ready-to-serve beverages, and international premium categories showed resilience, achieving significant growth from the previous year. The company also enhanced its trade and consumer engagement through digital platforms, activations, and increased brand visibility,” the statement said.

Despite these successes, Guinness faced a 37% increase in the cost of sales due to inflation-driven rises in raw material prices, unprecedented utility cost increases, and currency devaluation. Nevertheless, operating profit grew by 9%, driven by strong revenue performance and enhanced productivity.

Adebayo Alli, Managing Director of Guinness Nigeria, expressed pride in the company’s financial performance amid macroeconomic challenges. “We are extremely proud of our team’s ability to deliver such robust financial results despite significant headwinds. Our focus on optimizing our category mix, innovating products, and adjusting prices strategically has been crucial to navigating these challenges and driving growth.”

Looking ahead, Alli emphasized the company’s commitment to transforming Guinness Nigeria by leveraging digital innovation, deepening consumer engagement, and investing in its people and brands to ensure continued growth and value creation.

The company also faced significant currency devaluation, with the exchange rate moving from N759.03/$1 at the beginning of the year to N1,540/$1 by the end of the fiscal year. This led to a notable unrealized forex loss and a pre-tax loss of N73.68 billion. Despite these difficulties, the board remains confident in the company’s strategic direction.

Chairman Dr. Omobola Johnson affirmed the firm’s commitment to adapting its strategy to the evolving business environment. “Our performance this year highlights the resilience and adaptability of our business. We remain focused on delivering returns to our shareholders and creating long-term value for all stakeholders.”