Guinness Nigeria F23 Q3 Results

28 Apr 2023 | Press release

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 N172,478,412 (one hundred and seventy-two billion, four hundred and seventy-eight million, four hundred and twelve thousand) for its third quarter period ended 31 March 2023, which represents an 8% growth over the same period last year. The Company reported a Profit After Tax of N5,865, 691,000 (five billion, eight hundred and sixty-five million and six hundred and ninety-one thousand) in the period under review. The results which show an impressive performance, is 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. John Musunga, Managing Director/CEO, Guinness Nigeria Plc said: “In the first nine months of fiscal 23, Guinness Nigeria has delivered growth in the face of the challenging operating environment characterized by rising inflation, deteriorating foreign exchange situation, temporary cash scarcity, and election related anxiety and disruptions. Total net revenue grew by 8%, driven by category mix optimization, pricing and organic volume growth in mainstream spirits, supported by excellent execution of our route to consumer strategy.”

“Revenue growth was particularly strong for the strategic focus categories: Premium Stout, Ready-to-Serve, and Spirits. We continued to invest behind our strategic growth priorities to remain top of mind and command a premium to consumers who chose our brands for the value they bring to their occasions.” Musunga said.

The released statement stated that the company’s Gross Profit grew 6%, and its distribution expenses increased by 24%, driven by a nearly three times spike in the price of diesel and other haulage inputs.

“The costs of goods grew faster than net sales revenue due to inflationary pressures and the impact of foreign exchange depreciation ; and increased administrative expenses in the period are driven by payroll inflation (mainly performance-related) and one-off tax provisions.” Musunga explained.

“Coming from an exceptional 2022 performance, operating profit softened by 24% versus same period last fiscal, whilst it remains very strong at N17.4 billion considering the prevailing macroeconomic environment. The implicit 18% devaluation of Naira caused the financing costs to spike by 1,696% vs same period last year. We mitigated this, to some extent, by generating 67% interest income growth from our investment of free cash.”

“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 73rd year of existence in Nigeria, we remain fiercely committed to Nigeria and to having a positive impact on those around us and our consumers.” Musunga added.

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”.