Guinness Nigeria reports +31% revenue growth despite economic challenges
By Kola Bola
Guinness Nigeria Plc has announced +31% revenue growth for the fiscal that ended on June 30, 2024. The revenue growth showcased a good market outing amid a tensed macroeconomic environment.
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.
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.
Yet 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.
Alli 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, Chairman, 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 with a wide portfolio of brands catering to consumers of non-alcohol and alcohol beverages including Malts, Ready-to-Drinks, Spirits, Stout and 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.
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 at the 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.
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