Guinness Nigeria Plc’s revenue for the first half of the 2022 financial year grew by nine per cent, the company said in a statement on Saturday.
Guinness also said its gross profit rose by 16 per cent, and a five per cent increase in the cost of sales despite the challenging business environment driven by inflation and the impact of naira devaluation on imported materials in the period under review.
In a statement, the Managing Director and Chief Executive Officer of the company, Mr John Musunga, said, “In the half year ended 31st December 2022, Guinness Nigeria delivered results that reflected the continued regulatory, competitive and inflationary challenges in the operating environment in Nigeria.
“The period was characterised by challenges such as escalating inflation, dwindling consumer disposable income, and a worsening foreign exchange situation. Despite these challenges, the business recorded good progress against our strategic focus brands.
“Despite lapping a strong quarter in 2021, revenue grew by nine per cent, benefiting from price and mix optimisation, as well as reflecting resilient consumer demand and improved outlet coverage as we continue to optimise our route to consumer.
“Revenue grew across most categories, driven by our strategic focus brands, Guinness, Ready-to-Serve, and Spirits. Malta Guinness was flat on the previous year due to the impact of increased pricing in response to the higher inflationary pressure on packaging costs.”
He added that, “Marketing expenses increased seven per cent, as we increased marketing investment to support our strategic growth priorities and target market share improvement.
“Distribution expenses increased 28 per cent, driven by an increase in the price of diesel, other haulage inputs, and asset replacement cost. Despite all the above, the company delivered N12.6bn operating profit.”
Musunga noted that the continued devaluation of the naira resulted in a 758 per cent increase in net financing costs, due to the revaluation of the hard currency debt.
He, noted that the finance income increased by 121 per cent on account of higher yields from short-term cash investments.
The Chair of the Board of Guinness Nigeria Plc, Dr Omobola Johnson, stated, “The board is confident that our strategy is sound, and will in the long term continue to drive value to all stakeholders.”
