How Guinness Nigeria Rakes In N15.27bn Profit In 3 Months

LAGOS – Guinness Nigeria, a subsidiary of Diageo Plc, has posted a Profit After Tax of N15,278, 335,000 billion for its third quarter ended March 31, 2022.

In a statement issued on Thursday, April 28, 2022, the company said the amount represented a 731 per cent growth over the same period in 2021.

The statement said Guinness Nigeria also reported a revenue of N159,444,503, which represented a 39 per cent growth over the same period last year.

“The results show an impressive performance and a significant improvement when compared to the same period last year.

“This is a testament to an unwavering commitment to meeting consumer demands as well as the company’s resilience in a challenging operating environment,” it said.

Commenting on the announcement, Mr Baker Magunda, Managing Director, Guinness Nigeria Plc, said the company had in the first nine months of 2021, continued to grow on the back of the strong recovery in the first half of fiscal year.

He said: “The business has delivered growth in the face of the challenging operating environment characterised by rising inflation and forex challenges in the three months ended March 31.

“Revenue grew by 39 per cent to N159.4 billion benefitting mainly from price increases across all brands, as well as from favorable brand mix and resilient consumer demand.

“We have delivered revenue growth across all key categories driven by our strategic focus brands, Malta Guinness and Guinness, as well as strong growth in local and imported spirits and the ready-to-drink category.

“This has further shown that our strategy is sound, and we are unwavering in our commitment to ensuring our long-term competitiveness in Nigeria.”

He said the released statement stated that Gross Profit grew 76 per cent in the period as revenues grew ahead of cost of sales.

Magunda said: “Cost of Sales increased by 24 per cent largely due to inflationary shift towards more expensive can products.

“Marketing expenses increased 68 per cent versus last year as it increased its marketing investments.

“We increased marketing investment to support our strategic growth priorities and the recovery of the on-trade.

“Distribution expenses also increased 36 per cent driven by higher volumes, freight and diesel inflation and extended journey time for road transportation.

”All of our efforts delivered an operating profit growth of 200 per cent to N22.9 billion.”

He noted that the Management at Guinness Nigeria remained resolute in its business strategy, as well as its engagement of stakeholders across its value chain.

“As we enter our 72nd year of existence in Nigeria, we remain fiercely committed to Nigeria and to having a positive impact on those around us and our consumers.

“We launched a give-back campaign in honour of our anniversary and have delivered care packages to 72 NGOs, 72 churches and 72 mosques in our host communities.

“We opened our new ultra-modern headquarters in the heart of Ogba Ikeja and we continue to take giant strides towards championing inclusion and diversity with the extension of our women’s empowerment programme tagged ‘Plan W’ to more rural communities in Owerri, Benin and Oshogbo.

According to him, the company was also driving responsible drinking with the nation-wide adoption of its e-learning Responsible Drinking Education Module themed, “The Wrong side of the Road.”

“All of these efforts are in line with strategy for consistent delivery of value for all stakeholders,” Magunda added.

Also, Dr. Omobola Johnson, Board Chair of the Board of Guinness Nigeria Plc, commended the result.

“The Board remains confident that our strategy is sound and will continue to support the management to build a business that will consistently deliver sustainable growth for all our stakeholders,” she said.