Guinness Nigeria Plc has announced its financial results for the twelve months ended 30th June 2024, showcasing a robust performance amidst a challenging macroeconomic environment.
In the twelve months ended 30th June 2024, Guinness Nigeria delivered a remarkable +31% year-on-year revenue growth. This strong performance was even more pronounced in the second half of the year, with revenue growth accelerating to 41%, up from 20% in the first half. This achievement is particularly notable given the challenging macroeconomic environment, characterized by declining consumer disposable income due to all-time high inflation, currency devaluation, fuel subsidy removal, and food insecurity.
The revenue growth was driven by an optimized category mix, innovative offerings, and targeted price increases to offset rising costs. Non-Alcoholic Malt, Ready-to-Serve beverages, and International Premium categories demonstrated resilience, recording notable growth compared to the previous year. The company also intensified its trade and consumer engagement efforts through digital platforms, activations, and captivating brand visibility.
Despite these accomplishments, the company faced increased cost of sales, which rose by 37% due to inflation-driven hikes in raw material prices, unprecedented utility cost increases, and currency devaluation. Nonetheless, operating profit rose by 9%, propelled by strong revenue performance and intensified productivity gains across the organization.
Commenting on the revenue growth, Managing Director of Guinness Nigeria, Adebayo Alli, expressed confidence in the company’s trajectory, he said, “We are extremely proud of our team’s ability to deliver such strong financial performance amidst significant macroeconomic headwinds. Our strategic focus on category mix optimization, innovative product offerings, and targeted price adjustments has been key to navigating these challenges and driving growth. Looking ahead, we are committed to our mission of transforming Guinness Nigeria with a strong focus on winning differently as we move into FY25.
“We will continue to leverage digital innovation, deepen our consumer engagement, and invest in our people and brands to ensure sustained growth and value creation for our stakeholders. The continued currency devaluation posed significant challenges, with the spot rate moving from N759.03/$1 at the start of the year to N1,540/$1 at the end of the financial year. This resulted in a substantial unrealized forex loss and a loss before tax of N73.68billion. Despite these challenges, the Board remains confident in the company’s well-crafted strategy.”
On his part, the Chairman of the Board of Directors, Guinness Nigeria, Plc, Dr. Omobola Johnson said, “We remain committed to continuously evaluating our strategy against the evolving business landscape to ensure we deliver returns to our shareholders and create long-term value for all stakeholders. Our performance this year demonstrates the resilience and adaptability of our business in the face of economic challenges.”
Guinness Nigeria, is the foremost Total Beverage Alcohol company in Nigeria with a wide portfolio of brands catering to consumers of non-alcohol and alcohol beverages including Malts, Ready-to-Drinks, Spirits, Stout & Beers. Some of its well-known and well-respected brands include, Guinness Foreign Extra Stout, Guinness Smooth, Malta Guinness, Orijin Bitters, Dubic Malt, Gordons Pink Berry, Gordons Orange Sunset, Smirnoff Ice, Smirnoff X1 Choco Vodka, Smirnoff Pine-apple Punch, amongst others.
With a very clear ambition – “To be one of the best performing, most trusted and respected consumer products companies 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, and in 1965, Guinness Nigeria was listed on the Nigerian Stock Exchange. In 1974, the company built its second brewery in Benin and expanded it in 1978 to accommodate a second stout brewery.
In 1982, Guinness built its fourth 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. Guinness Nigeria has also recently expanded its installed spirits production capacity at Benin and Ogba breweries, enhancing its capacity for innovative local spirits brands.