Guinness Nigeria reports strong performance with a 13% increase in revenue for Q1 F24
- Strong double-digit volume growth
- Revenue Increased by 13%
- Operating Profit Increased by 33%
- Administrative expenses reduced by 7%
Guinness Nigeria, a subsidiary of Diageo Plc, and a leading total beverage alcohol company in Nigeria has posted a revenue of N59.5 billion for its first quarter period ended 30 September 2023.
The unaudited result released to the Nigerian Exchange Group (NGX) showed a 33% increase in operating profit in the period under review, with revenue growth across key categories such as APNAD and Ready-to-Serve, while other categories experienced more modest growth rates. The increase has been achieved amidst a challenging macro-economic environment marked by rising inflation, currency devaluation, the aftermath of fuel subsidy removal, and security concerns that led to a reduction in consumer spending.
The Managing Director/CEO of Guinness Nigeria Plc, Mr John Musunga said “the result is the outcome of a dedicated workforce demonstrating resilience amidst a challenging macro-economic environment. We have continued to deliver on our promise of growth, through strategic innovation, great partnerships, and futuristic thinking despite the challenges faced”, he said.
He added that “Guinness Nigeria achieved a strong 13% growth in revenue, primarily propelled by inflation-led pricing adjustments and an optimized product mix driven by premiumization. We drove sales by intensifying its consumer engagement activities, enhancing its route-to-consumer strategy to expand outlet coverage, and harnessing the power of its digital capabilities. The strongest revenue growth was observed in key categories such as APNAD and Ready-to-Serve, while other categories experienced more modest growth rates”.
“Despite the strong top-line growth, gross profit remained flat, and gross margins declined in comparison to the previous year, primarily because cost of sales growth outpaced revenue expansion. This was mainly due to the inflationary impact of currency devaluation, which could not be fully offset by price increases.”
“However, by focusing on cost-saving initiatives and enhancing operational efficiencies, we reduced operating expenses compared to the previous year, and generated a 33% growth in operating profit.”Musunga said.
Mr. Musunga stated further that “irrespective of the continued challenging operating environment with high-level inflation and pressured consumer spending, the business will continue to focus on strategic and innovative ways in making our business seamless thereby leading to the satisfaction of our consumers. We remain committed to strategic growth ensuring we deliver on being the best performing, most trusted, and respected consumer products company in Nigeria”.
The Chair of the Board of Guinness Nigeria Plc, Dr. Omobola Johnson assured that “the Board is committed to continually reviewing the company’s strategy in response to the shifting business landscape, to sustain value creation for all stakeholders over the medium and long term” she said.