According to a statement released by the firm on Saturday, Guinness Nigeria Plc’s revenue increased by 9% during the first half of the 2022 fiscal year.
In addition, Guinness said that its gross profit increased by 16% and its cost of sales increased by 5% despite the difficult economic climate brought on by inflation and the effects of the depreciation of the naira on imported goods during the period under consideration.
The company’s managing director and chief executive officer, Mr. John Musunga, issued a statement in which he stated:
“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.”
The revaluation of the hard currency loan, according to Musunga, caused the naira’s ongoing depreciation to increase net financing costs by 758%.
He stated that greater yields from short-term cash investments were the reason the finance revenue surged by 121 percent.
Dr. Omobola Johnson, the board chair of Guinness Nigeria Plc, said, “The board is confident that our strategy is sound, and will in the long term continue to drive value to all stakeholders.”
