Guinness Nigeria PLC: Revenue Surges 28% Amidst Economic Challenges, Demonstrating Resilience and Growth

25 Apr 2024 | Press release

Guinness Nigeria Plc Announces Unaudited Results for the Period Ended 31 March 2024

Lagos, Nigeria – (April 25, 2024)

Guinness Nigeria Plc, a foremost total beverage alcohol company in Nigeria and a subsidiary of Diageo Plc., released its unaudited financial results for the nine-month period, ended,31 March 2024, revealing both resilience and adaptability in navigating a turbulent economic landscape.

In a year marked by unprecedented challenges, Guinness Nigeria delivered a commendable 28% year-on-year revenue growth, reaching ₦220.3 billion compared to ₦172.47 billion in the same period last year. This notable surge was particularly pronounced in Q3, with a remarkable 44% acceleration, signifying a strategic pivot amidst evolving market dynamics..

Despite grappling with soaring inflation rates, currency devaluation, and escalating food insecurity, Guinness Nigeria demonstrated remarkable resilience, leveraging proactive pricing strategies and optimized product offerings, focusing on premium categories to sustain growth momentum.

Furthermore, the company intensified its focus on consumer engagement and trade support, leveraging its digital platforms. Notably, categories such as Non-Alcoholic Malt, Ready-to-Serve beverages, and International Premium Spirits witnessed substantial revenue growth, underscoring the effectiveness of these strategies.

In tandem with revenue growth, operating profit surged by 27%, reaching ₦ 22.21 billion fuelled by the strong revenue performance and intensified drive for productivity across the organization despite extreme inflationary tensions.

However, amidst these triumphs, challenges persisted, notably in the form of significant unrealized forex losses amounting to ₦81 billion. This was attributable to the continued devaluation of the Naira, closing the quarter at N1,351/$1. Despite this setback, recent trends suggest a reversal, with the Naira exhibiting signs of stability in recent weeks, offering a glimmer of hope for potential exchange rate gains in the last quarter of the fiscal year.

Looking ahead, the Board remains confident in the company's well-crafted strategy. The Board is committed to continuously evaluating this strategy in response to the evolving business landscape, to deliver returns to its shareholders and create long-term value for all stakeholders.

Adebayo Alli, Managing Director/CEO, Guinness Nigeria Plc., said “While the current macroeconomic environment will continue to present challenges, I am confident in the resilience of our business and our ability to navigate the volatility. Our focus remains steadfast on innovation,  and stepping up operational excellence to meet our consumers’ evolving tastes and preferences. Led by our strategic vision that prioritizes long-term sustainability and shareholder value, we are poised to emerge even stronger".

About Guinness Nigeria

Guinness Nigeria, part of the world’s largest drinks company, Diageo Plc., is the only Total Beverage Alcohol company in Nigeria with a wide portfolio of brands catering to non-alcohol and alcohol drinkers, with non-alcoholic beverages, Spirits, Lager & Beers. Some of its well-known and well-respected brands include: Guinness Foreign Extra Stout, Guinness Smooth, Malta Guinness, Orijin Bitters, Dubic Malt, Mr.Dowells, Gordons Pink Berry, Gordons Orange Sunset, Smirnoff Ice, Smirnoff Vodka, Smirnoff Pine-apple Punch, amongst others.

With a very clear ambition – “To be the best performing, most trusted and respected consumer products company in Nigeria”, Guinness Nigeria delivers on its sustainability and responsibility commitments which are focused on three areas; Promoting Positive Drinking, Championing Inclusion and Diversity and Pioneering Grain to Glass sustainability. The company continues to be a champion for responsible drinking and community development.

Guinness Nigeria, home of the first Guinness brewery outside of the British Isles, was established in 1950, making it one of the oldest serving manufacturing companies in Nigeria. The first bottle of Guinness Foreign Extra Stout in Nigeria was brewed in our Ogba Brewery in 1962, two years after Nigeria’s independence. Three years later, in 1965, Guinness Nigeria was listed on the Nigerian Stock Exchange. In 1974, we built our second brewery in Benin, and expanded it in 1978 to accommodate a second stout brewery. In 1982, we built our fourth Guinness brewery in Ogba, Lagos and expanded both the Benin and Ogba breweries to further increase capacity and meet the growing demand for Guinness Nigeria products in 2011.